Amazing things are happening with the companies included in the UK’s flagship FTSE 100 stock index. Their stocks have surged to incredible highs. As a result, the FTSE 100 index has surpassed the 9,000-point mark for the first time in history.

On July 15, the UK’s FTSE 100 stock index crossed the 9,000-point threshold for the first time ever. The index is now 750 points higher than at the start of the current year.

Other European stock indices are also asserting their strength: France’s CAC 40 added 0.12% and Germany’s DAX rose 0.14%, though both remain below the records set last week.

This situation is boosting investor sentiment. The optimism is largely driven by US President Donald Trump’s warnings toward Russia. The 50-day delay on the implementation of new US sanctions helps reduce the immediate threat of a crisis in the oil market, putting downward pressure on crude prices.
Against this backdrop, the outlook for oil-consuming countries — like those in Europe — is improving.

Experts attribute the current positive trend in EU and UK stocks to Donald Trump’s unpredictable tariff policy, which makes European markets appear more stable by comparison. In the first half of 2025, European markets have shown record growth relative to their US counterparts. This trend is going on.

The prosperous trade relationship between the European Union and the United States is under serious threat. According to European Union Trade Commissioner Maros Sefcovic, Washington's decision to impose a 30% tariff starting August 1 is to blame. He warned that these duties could dismantle the long-standing, mutually beneficial transatlantic partnership.

Sefcovic stated that such a hefty tariff rate would "prohibit" trade between the EU and the United States. He believes that commerce would become virtually impossible. The commissioner also noted that European leaders are deeply disappointed by the US president's decision to push ahead with sweeping tariffs. Nevertheless, the EU remains open to negotiations.

Notably, Donald Trump recently announced a 30% tariff on EU goods, set to take effect on August 1. The US leader added that if European authorities respond with retaliatory measures, the US will simply raise its own tariffs by an equivalent amount.

In response, European Commission President Ursula von der Leyen pledged to "take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required." She previously warned that tariffs on EU exports would "disrupt key transatlantic supply chains." Experts conclude that the result would be pain on both sides of the Atlantic, affecting companies and consumers alike.

US President Donald Trump seems to be enjoying his tariff tango with world leaders. One moment, he hikes tariffs, and the next, he reverses them, imposing and reimposing as he sees fit. However, the latest move is no laughing matter for European nations. Starting August 1, the United States will slap a 30% tariff on goods imported from the European Union. A similar measure is being implemented against Mexico.

"Starting on August 1, 2025, we will charge the European Union a tariff of only 30% on EU products sent into the United States, separate from all sectoral tariffs," Trump announced.

The American president added that the same approach would apply to Mexico. According to the White House, if EU or Mexican officials respond with tariffs of their own, the US will match those new rates by adding them on top of the existing ones.

Earlier, Trump introduced a 35% tariff on Canadian goods and said that he might lift the tariff if Canadian manufacturers relocated their production to the United States.

Poor Europe! It risks losing its competitiveness! Action must be taken to avert this disaster. A critical issue — the potential loss of Europe’s global competitiveness — was raised by Jamie Dimon, CEO of JPMorgan Chase. According to Dimon, Europe is currently "losing the global economic race against the US and China." In light of this, he urged European countries to reform their economies urgently.

"Over the past 10–15 years, Europe's economy has shrunk from 90% of US GDP to just 65%. That’s bad. You are falling behind," Dimon stressed. He noted that while European companies "remain globally relevant and large, their position is weakening," and the region is losing economic strength. He reiterated earlier calls for significant economic reforms to ensure sustainable growth.

Dimon’s comments, coming from the head of one of the world’s largest financial institutions, coincided with rising debate over the need for a large-scale industrial strategy for the region.

Previously, former ECB President Mario Draghi proposed investing around €800 billion per year into industrial development to maintain Europe’s competitiveness against the US and China.

As a reminder, this year the European Commission launched a new initiative to reform the financial system — the “Savings and Investment Union.” The initiative aims to transform European household savings into productive investments and revive capital markets. Currently, €300 billion flows out of the EU to the US every year, while the majority of European household savings remain in bank deposits rather than being invested.

Key components of Europe’s financial reform include centralizing financial supervision, simplifying rules for retail investors, and harmonizing bankruptcy laws. Despite ongoing political divisions among EU member states, European leaders are hopeful that the reform will go beyond declarations and become a tangible, actionable policy agenda.

The question of American exceptionalism still haunts analysts and market participants in the US, Europe, and Asia. Everyone is watching closely to see how the situation unfolds.

According to analysts at Nomura, the long-standing theme of US exceptionalism in equity markets is now “showing signs of fatigue.” They note that global investors are actively reallocating capital toward Europe and emerging markets.

High-frequency ETF data reveals a significant slowdown in inflows to US-focused offshore equity funds. Over the past 20 weeks, there has been a net outflow of $4.7 billion, marking a notable reversal after $160 billion in net inflows between mid-2023 and early 2025. Despite US equities reaching new highs, foreign investor interest seems to be waning.

In contrast, Europe-focused offshore ETFs have recorded $15 billion in net inflows over the past 21 weeks. Similarly, emerging market ETFs have seen $13.6 billion in inflows over the past 23 weeks.

Since late March 2025, India ETFs alone have attracted $1.8 billion. As for Taiwan and Japan, capital is primarily flowing in directly through equities rather than ETFs. Asian markets currently show a mixed picture. South Korea’s offshore ETFs have seen $1.4 billion in inflows over the past six weeks, driven by interest in AI and optimism around corporate governance reforms.

Talks of the decline in US exceptionalism — a narrative that has long shaped global portfolio allocation — have been gaining momentum since the beginning of 2025. This also coincides with a weaker US dollar and diminishing demand for US Treasuries. In this context, foreign investors are increasingly seeking more stable stores of value, Nomura emphasizes.

The first cryptocurrency is back in favor. For the first time in a long while, Bitcoin has broken through the $122,000 mark. No wonder, investor optimism is steadily growing.

After breaking out of a narrow trading range, the leading cryptocurrency has spread its wings. Interestingly, it had been stuck in that range for the past several months. Earlier, skeptics doubted whether the flagship cryptocurrency could regain the record-breaking momentum it had at the beginning of 2025. And here is the result: Bitcoin has indeed managed to break through a critical threshold.

Following a sharp rally driven by news of US President Donald Trump’s re-election for a second term, BTC stalled in a range around $100,000. That pause lasted several months. Concerns about Trump’s political and economic agenda dampened crypto investor enthusiasm. However, risk assets like stocks are once again approaching their historical highs. Bitcoin has resumed its uptrend and reached its all-time high. “This situation reflects a more mature perception of Bitcoin. It’s seen not just as a speculative asset, but rather as a macro-hedge and a scarce store of value,” George Mandres, leading trader at XBTO Trading LLC, said.

On July 14, the flagship asset was trading at $122,200, and just a few hours earlier had reached $122,600. Since December 2024, Bitcoin has gained over 30%. “Bitcoin has crossed the $120,000 mark, but the real test lies at $125,000. Support is seen around $112,000, and any pullback looks more like a buying opportunity than a trend reversal,” Rachel Lucas, analyst at BTC Markets, noted.

One of the drivers of Bitcoin’s recent rally was the mass liquidation of bearish positions — those betting on a decline lost over $1 billion. Another key support for the flagship asset came from expectations surrounding Crypto Week in the US Congress, where lawmakers are going to discuss crucial digital asset legislation.

However, some analysts remain skeptical about the duration of Bitcoin’s rise. They believe this surge may be short-lived, with Bitcoin facing either a decline or consolidation in its current range. Time will tell who is right.

Tough times are ahead for Mexico and the European Union. US President Donald Trump has tightened his tariff regime and introduced 30% tariffs on these trade partners. The hefty tariffs will come into effect on August 1, 2025.

The White House leader made these announcements on his social media platform, Truth Social. He published letters sent to President of Mexico Dr. Claudia Sheinbaum Pardo and European Commission President Ursula von der Leyen.

Regarding Mexico, Trump stated that the country’s efforts to combat drug cartels are insufficient. “Mexico still hasn’t stopped the cartels trying to turn all of North America into a drug trafficking hub. I can’t allow this!” the American leader emphasized. He also stated that if Mexico raises its tariffs on the US, he will be forced to add another 30% to the newly-imposed tariff.

Trump was equally adamant about the European Union. The President said the US “must move away from these long-standing trade deficits caused by European tariffs and non-tariff measures and trade barriers.” He insisted that America’s trade relationship with the EU is “far from reciprocal.” Earlier, Trump had stated that goods redirected to avoid higher tariffs would be subject to even higher rates. From his viewpoint, a 30% rate is far less than what is needed to fix the trade deficit imbalance that America has with the EU. He also noted that if the EU hikes its tariffs on US imports, Washington will slap another 30% to the tariffs imposed on the bloc.

Previously, the American leader unveiled new tariffs for most countries, including Japan, South Korea, Canada, and Brazil, as well as a 50% duty on copper.

Bitcoin has finally stormed into big politics. Elon Musk has announced that his new America party would officially support digital assets. The pro-crypto rhetoric is a central pillar in his political agenda, something like “everything for blockchain, and a little for the people.”

DeVere Group CEO Nigel Green believes this move is not just another marketing stunt—it is direct confirmation that Bitcoin is no longer just about investment, but about sovereign power. In his words, the flagship crypto has been morphing from an exotic financial instrument into a “national value instrument” and, importantly, spreading into a political agenda.

Back in March, Donald Trump signed an executive order to create a strategic Bitcoin reserve. It sounds like science fiction, but we are talking about 200,000 BTC now stored in a federal vault alongside gold and oil. Obviously, Elon Musk is just exploiting the crypto hype.

In his statement, Musk defined Bitcoin as the cornerstone of his party’s economic platform. In that sense, he is expanding the “political capital” of the asset, signalling that blockchain is now running for office as well. The market responded, and Bitcoin’s price spiked above $120,000, a reminder that it is still sensitive, especially to the mix of hype and power.

“Trump thinks Musk has gone crazy.” Musk thinks Trump has gone off-budget. Especially after the Big Beautiful Bill, a piece of legislation Musk called “disgusting,” which Trump signed with a big grin. The bill includes increased defense spending and $4 trillion in tax cuts. Musk has a longstanding personal issue with such numbers: he used to run the Department of Government Efficiency (DOGE), and this kind of generosity rubs him the wrong way.

The new party still lacks details: no registration with the commission, no roadmap—just a website and enthusiasts like Mark Cuban and Anthony Scaramucci. However, in crypto-politics, that is already half the battle.

Interestingly, Musk once promised that he would no longer promote cryptocurrencies. But, apparently, politics makes everyone revise their stance, especially when politics lets them build blockchain into the Treasury Department.

After Donald Trump had officially imposed a 25% tariff on Japan’s imports starting from August 1, Tokyo and Washington reached a constructive solution… to go ahead with the negotiations.

On July 8, at 9:00 PM Tokyo time, Japan’s chief negotiator Ryosei Akazawa held a phone call with US Treasury Secretary Scott Bessent. The conversation lasted thirty minutes and, according to Japan’s Secretariat, included “frank and in-depth discussions.” In other words, it was exactly the kind of wording typically found in press releases when both sides stood their ground but avoided a scandal.

Despite the hefty tariff hike, Japan maintains equanimity and a diplomatic tone. In an official statement, Tokyo emphasized that it would make every effort to seek a mutually beneficial solution, though no one specified just how “mutual” or for whom it would be “beneficial.”

Well, the tariffs are in place, and the dialogue is going on. In the East, that already counts as progress. Apparently, the White House has the same viewpoint.  

US President Donald Trump has once again reached for his favorite economic weapon, threatening to impose tariffs on 14 countries, ranging from Japan to Bosnia and Laos. The new tariffs, which could reach as high as 40%, are set to take effect on August 1. This time, however, global markets remained unfazed.

Japan’s Nikkei 225 not only held steady but actually added 0.3%. South Korea’s Kospi jumped by 1.8%. Europe maintained a tone of diplomatic poise, with the STOXX 600 ticking down just 0.09%. Meanwhile, Wall Street was in rally mode. This all came after blunt letters threatening tariffs were sent to nearly half the world. So, where is the panic?

The answer may lie in a familiar investment playbook: the TACO trade. This new Wall Street term is short for "Trump Always Chickens Out." When the president describes a deadline as "firm, but not 100% firm," markets conclude that there will be drama but no follow-through.

According to analysts, most investors had already priced in a scenario where tough talk is followed by a strategic retreat. The absence of letters to key economies such as the EU, India, and Taiwan suggests they may either be next in line or already engaged in behind-the-scenes talks aimed at avoiding escalation.

Economists note that even if tariffs climb from 15.5% to 17.3%, it would hardly be apocalyptic. Past experience shows that US consumers typically take it in stride, while Trump is quick to funnel tariff revenue into economic stimulus.

European diplomats are not in panic either. According to them, Washington is open to a deal. The tentative structure envisions a 10% baseline tariff, with exemptions for certain goods such as alcohol and aircraft. Of course, everything depends on the shifting winds of White House sentiment — in other words, on Trump’s next move.

Still, experts such as Tony Meadows of BRI Wealth Management caution that while markets may be drifting along on the tariff seesaw, duties ultimately act as a tax on the real economy. And once the flywheel truly gains momentum, the ride could turn turbulent.

For now, equity markets are treating this as just another episode of the trade game. Bets are growing that it will all blow over. However, maybe this time, the script will have a surprise ending.

US President Donald Trump once again reminded the world who holds the reins of global currencies.

In a speech broadcast on the White House’s official YouTube channel, he declared that if the US dollar loses its status as the world’s reserve currency, the United States “will no longer be the same.”

According to Trump, the scale of the losses would be comparable to defeat in a world war, without gunfire, but with an economic aftermath far worse than any conflict. Because, as the president implied, the dollar is not just a currency — it is the last pillar of US global leadership.

As usual, geopolitics takes a back seat when something sacred is at stake: the international recognition of America’s paper-based authority.

ECB President Christine Lagarde addressed the public with a message that is rare for any central bank: “We’re doing just fine.” According to her, the current level of interest rates is just right — not too high, not too low, but exactly what is needed to maintain inflation stability and peace of mind in the markets.

Lagarde once again reaffirmed the ECB’s sacred benchmark — 2% CPI annually. The message was clear: we have reached it, we will keep it, and if needed, we will take action. What particular action was not specified, but the confidence in her tone was unmistakable.

Despite the broader global economic confusion, the ECB promises consistency and stability. Lagarde acknowledged that the weather in the global economy can change quickly, but in her words, Frankfurt is able to cushion the EU economy from external headwinds.

When asked where interest rates might go next, she responded diplomatically: for now, everything looks “strong and favorable”, at least enough to avoid any hectic moves. Since June 2024, the ECB has already cut the key refinancing rate eight times. Now, the time seems right to pause and take a breath.

Meanwhile, economists are speculating: if inflation is right where it should be, could we see one more rate cut before year end? But Lagarde evaded a straightforward answer.

It goes without saying, the burning issue of the euro’s forex rate versus the US dollar was raised. Lagarde dropped a hint that the single European currency has the potential to become the world’s leading reserve currency, but it will require a bit more effort from policymakers. Like any currency, the euro stands stronger when the economy is on a sound footing.

To sum up her speech, interest rates are put on hold, inflation is under control, and the euro has bullish long-term prospects.

Donald Trump has once again shaken up the global order with his proposal to impose 10% tariffs on BRICS countries. In theory, this move is meant to weaken Russia, Iran, and, just in case, half the developing world. However, according to British analysts, rather than taking a hit, Russia may quietly welcome the move as a strategic advantage.

The logic is simple. The current escalation between the United States and China plays directly into Moscow’s hands. The more friction there is, the easier it becomes for Russia to replace American suppliers in the global energy market. After all, Beijing has never been eager to buy oil from the US.

Moreover, rising prices for BRICS exports, ranging from raw materials to semi-finished goods, could be a windfall for Russian producers. The more expensive the imports, the stronger the case for boosting domestic output. Paradoxically, tariffs intended to punish could end up offering a helping hand.

If Washington goes further, disrupting dollar dominance or limiting SWIFT access, the BRICS nations already have backups in place. CIPS and SPFS, their respective payment systems, may lack polish, but they get the job done.

Finally, there is a geopolitical twist. If the targeted nations choose to unite, China could well lead an "anti-tariff alliance," potentially welcoming not only Russia but also EU countries upset with Trump's tactics. What started as a threat could evolve into a coalition.

If this scenario plays out, Trump's initiative may go down in history as a case where a shot aimed at the BRICS group backfired.

It looks like Germany has weathered the storm. Prices, which recently skyrocketed, have finally eased their pace. Analysts agree that the sharpest peak of inflation is over. However, they warn that this calm may be more of a pause than a permanent change.

Headline inflation currently hovers just above the coveted 2% mark, the gold standard for central banks. As always, however, the devil is in the details: inflation in the services sector remains stubbornly high, verging on what would be considered provocative by central bank standards.

Analysts are proceeding with caution. While the situation has stabilized, the foundation remains fragile. Service prices are rising, wage growth is slowing, geopolitical tensions are high, and the energy market is struggling.

The outlook for energy prices appears more optimistic heading into 2026, particularly with promised cuts to electricity tariffs. Still, in the grand scheme, this is more of a band-aid solution than a long-term fix.

Stripped of volatile swings in food and fuel prices, core inflation is indeed on a downward trend. Yet analysts caution against expecting a return to the "good old days" of 1% inflation and zero interest rates. The world has changed, as have the price tags.

Persistent inflationary triggers remain geopolitics, climate-related spending, the localization of production facilities, and ever-climbing domestic costs, ranging from defense to decarbonization. Each factor adds weight to the inflation scale.

According to analysts, another inflation shock is not on the horizon, but complacency would be premature. Germany may be entering a new phase where inflation no longer startles but does not retreat either. It simply lingers.

Sunday was a turbulent day: Donald Trump lashed out at Elon Musk, once his ally, but now, it seems, his main irritant on Truth Social. The cause was Musk’s initiative to create a third political party. Trump did not appreciate the idea and expressed himself in his usual manner: “It’s sad to see how Elon has gone off the rails,” the president noted, adding that third parties in the US are a path to "COMPLETE AND TOTAL CHAOS."

Along with this, Trump made sure to mention his “Big Beautiful Bill” that cancels the electric vehicle mandate — a direct blow to Tesla. Musk had previously claimed that this very bill could lead America to bankruptcy.

The cherry on top was a hint at a conflict of interest between Musk and NASA, suggesting that Musk is promoting a "close Democrat friend" there, which is allegedly "inappropriate."

The rift between Trump and Musk, which not long ago looked like a political alliance, has now officially entered the phase of a bitter feud. Interestingly, Elon Musk used to be one of the main financiers of Trump’s election campaign and later headed the Department of Efficiency in his administration. However, he ran the government agency until May. Afterwards, he went off the rails.

Now, Musk is serious about shaking things up with the intention of challenging the two-party system. The entrepreneur certainly does not lack courage, but the history of third parties in the US looks like a disappointment: the Libertarian Party has existed for decades, yet it has not asserted itself in Congress.

The question is open whether the world’s wealthiest person can rewrite the US political map. But one thing is clear — his efforts certainly will not be boring, especially his tweets on Truth Social.

On Sunday, European Commission President Ursula von der Leyen and US President Donald Trump had what was officially described as a "very good exchange of views." What exactly that entailed remains a mystery left to the press office, but the phrasing sounded diplomatic enough.

On Monday, a European Commission spokesperson clarified the bloc's objective: the EU still aims to clinch a trade deal with the United States by July 9. The goal is to sidestep the pain of tariffs, which Brussels considers mutual and entirely avoidable.

"We want to reach a deal with the US. We want to avoid tariffs. We believe they cause pain. We want to achieve win-win outcomes, not lose-lose outcomes," the spokesperson told reporters during the Commission's daily briefing. This was an apparent reminder to Washington that dialogue is better than trade wars.

Meanwhile, the US administration remains unfazed. According to officials, reminder letters about the impending tariffs will be sent to all nations that fail to reach an agreement by the deadline. Starting August 1, there will be no turning back—the new tariff season begins, with no exceptions or extensions.

Washington has decided to simplify life for itself. Starting from August 1, a 25% tariff will be valid for all goods from Japan and South Korea with no clarifications, exceptions, or sentiments. Donald Trump announced this on his favorite social network, TRUTH Social, adding, “We just want fair trade. For now, it will be 25% for everyone.”

The reason is classic: a trade deficit allegedly caused by cunning barriers from the Asian side. To avoid any lengthy investigation, they decided to go with the principle “one rate — one size fits all.”

This is just a warm-up. In early July, Trump hinted that other figures could be applied to tariffs on Asian imports, ranging from 10% to 70%. It all depends on imagination. But the most important thing, as the president emphasized, is that it is “nothing complicated” and strictly “within reason.” This “reasonable” approach is already playing havoc with Asian markets.

Meanwhile, calm and diplomacy prevail in Brussels. European Commission representative Olof Gill assures that negotiations with the US are ongoing “at all levels” — from memoranda to agreement paragraphs. Europe still hopes that the tariff fever will pass without complications.