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Deutsche Boerse, Euronext step up battle against IPO flight to US
In the face of U.S. competitors, two of Europe's largest stock exchange operators have stepped up their efforts to keep local IPOs. Marketing and research are challenging the perception that New York listed companies command higher valuations. The stock exchanges of Europe and the UK were hit by a lack of IPOs during the last two years. A number of local companies have chosen to float in the U.S. because of its larger pools of capital, and higher valuations. Deutsche Boerse (which operates the Frankfurt Stock Exchange) warns of sluggish post IPO performance, increased costs, and the threat litigation for firms listing in the U.S. The study found that two-thirds (including Germany) of the companies listed in Europe rose on their first trading day, whereas only half of European companies listed in the U.S. saw their stock rise on their debut. Over time, the European IPOs also performed better than those in the United States. The data does not mention valuations at IPO. However, the exchange highlighted several examples in its report of European listed companies trading at a higher premium than their U.S. listed peers. Euronext operates seven markets, including Amsterdam and Paris. It plans to reissue the same paper, challenging the belief that U.S. listed firms are valued higher than their European counterparts, its spokesperson said. Stefan Maassen is the head of capital market and corporates for Deutsche Boerse. He said: "We see more of a competition between Europe and U.S. markets in terms of listing, than within Europe." Exchanges receive fees from companies listing on their platforms, as well as from brokers who trade securities. They are considered essential by policymakers in attracting investment. DEEP MARKETS The US capital markets' size and depth are attractive to those who want to list their companies. According to LSEG, based on the closing prices of Monday, the S&P500 has a capitalisation of almost $49.5 trillion. This is four times more than Europe's Stoxx 600. Officials in Europe are also considering new listing regulations to improve the access to finance. The London Stock Exchange, which in March circulated a document titled "Mythbusting", questioned the perception that U.S. listed companies are valued higher than those in London. In its document, Deutsche Boerse said that it had found the average share price of U.S.-listed German companies has fallen by 13% since 2004. It cited trivago.com and Mytheresa.com as two examples. Both have seen their prices fall since flotation. Frankfurt issuers have seen a 24% increase. New Financial, a capital markets think-tank, found that 130 European companies, worth $667 billion, chose to either list or relocate their primary listing in the United States during the last decade. According to the think-tank, 70% of these are trading at a discount from their original listing price, with an average decline of 9%. In a speech on Tuesday, Christian Sewing, CEO of Deutsche Bank, commented on the move of European companies to the U.S. Deutsche Boerse warns that cross-border listed firms may face greater lawsuit risks. Some market participants do argue that the possibility of litigation provides shareholders with a path to redress. Exchange executives claim that the tariff-induced turmoil in U.S. markets may also increase the appeal of European exchange markets. Some market participants, such as Eva-Maria Wiecko of Rothschild & Co's Head of Equity Market Solutions for Germany and Austria, are more sceptical. In recent years, the U.S. stock market has experienced inflows. However, European markets have seen a large amount of outflows. Wiecko stated that "the recent rebalancing is a fraction of this number, underlining the continued relative strength" of the U.S. Market. Charlie Conchie reported. ($1 = 0.8950 euros). Emma-Victoria Farr, Tom Sims and Anousha Sakoui contributed to the report; Emelia Sithole Matarise edited it.
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Dollar drops as global stocks rise after US inflation data
The dollar dropped and the major U.S. indexes rose on Tuesday, after data showed that U.S. consumer prices increased less than expected in March. This was when President Donald Trump announced a series of tariffs which have caused havoc to global markets. European shares rose for the fourth session in a row, while global stocks also rose. Crude oil prices increased, thanks to a temporary reduction in U.S. - China tariffs. On Monday, the U.S. announced that it would suspend its trade war with China for 90 days. It will also reduce reciprocal duties as well as other measures. They will continue to negotiate a permanent agreement. The agreement has reignited the appetite of investors for stocks, commodities and cryptocurrencies. Tuesday's inflation numbers have also helped fuel this move. The Bureau of Labor Statistics reported that its consumer price index increased by 0.2% in April. This brings the annual growth down to 2.3%, from 2.4%. Economists surveyed by predicted a rise of 0.3% per month and 2.4% annually. Bill Adams, chief economics for Comerica Bank, Dallas, wrote in a letter that the report was good. In 2025, inflation should be manageable by most consumers and business. Wall Street saw the S&P 500, and Nasdaq advance on the back of softer than expected inflation figures and the easing in U.S. China trade tensions. The S&P rose 54.07, or 0.92% to 5,898.13 while the Nasdaq Composite climbed 329.41, or 1.76 %, to 19,038.10. Under pressure from UnitedHealth, the Dow Jones Industrial Average dropped 177.27, or 0.42% to 42,233.19. The firm had suspended its annual forecast, and its CEO resigned. Dollar retreated from its sharp gains of the previous session due to the inflation data. Last seen down by 0.69% versus a basket. The euro increased by 0.85% to $1.1181. Peter Cardillo is the chief market economist of Spartan Capital, a New York-based firm. The European stock market ended the day slightly higher with a 0.1% gain, their highest level since March. Emerging Market stocks dropped 4.28 points or 0.37% to 1,157.57. The broadest MSCI index of Asia-Pacific stocks outside Japan fell by 0.51% to 603.95 while Japan's Nikkei gained 1.43% to 38,183.26. After the Geneva talks, the U.S. announced it would reduce tariffs on Chinese imports from 145% to 30%, and China said that it would lower duties on U.S. imported goods from 125% to 10%. The change in U.S. China trade relations has caused traders to lower their expectations of Federal Reserve rate reductions, believing that policymakers will have more flexibility to lower rates as inflation risks decrease. The traders are now pricing in a 56 basis point reduction this year. This is down from the forecasts of over 100 basis points made in April when concerns about Trump's tariffs reached their highest level. Cardillo stated that "the Fed is on the right track and until there are any real changes in terms of ending the trade war by June, a rate cut in June remains in doubt." Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture. Christopher Hodge said that the tariffs would still be higher after all was said and done and this will have a negative impact on U.S. economic growth. The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024. The yield on the benchmark U.S. 10 year notes increased by 4.8 basis point to 4.505%. And the yield of the 2-year note, which moves typically in line with expectations about interest rates for the Federal Reserve rose by 1.9 basis point to 4.021%. Spot gold rose 0.41%, to $3,246.82 per ounce. U.S. Gold Futures closed 0.6% higher, at $3,247.80. U.S. crude oil rose by 2.81%, to $63.69 per barrel. Brent crude increased to $66.63 a barrel, an increase of 2.57%.
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California Senator calls on NOAA restore "billion-dollar" disaster database
Adam Schiff, a Democratic Senator from California, urged Commerce Secretary Howard Lutnick and acting National Oceanic and Atmospheric Administration secretary on Tuesday to restore a disaster database tracking U.S. disasters worth billions of dollars. He said that its removal prevented legislators, insurance companies and tax payers from seeing the rising cost of natural disasters as well as planning for future extreme events. NOAA announced that it would remove the "billion dollar weather and climate catastrophes" database "in line with evolving priorities", the latest example of how the agency has ended ongoing scientific datasets. Schiff, who represents California in the Senate, warned that the NOAA is understaffed for the hurricane season that begins on June 1. He said that 30 out of 122 National Weather Service offices lack chief meteorologists. Why it's important The database revealed that billion-dollar catastrophes increased from a few per annum in the 1980s, to 23 on average per year during the last four years. Climate scientists attribute this to the rise in global temperatures. The database revealed that in 2024 there were 27 disasters with losses exceeding $1 billion. CONTEXT As part of its efforts to boost oil, gas, and mining operations the Trump administration has acted quickly to reverse all federal spending on climate change. It also removed any regulations aimed at addressing emissions of greenhouse gases. KEY QUOTE In a statement, Schiff stated that the termination of this database "suggests this program was targeted" because it showed Americans how climate change is fueling more frequent weather disasters worth billions of dollars. If this is true, it's disturbing that the government would rather keep the public in darkness about climate change, hindering the country's capability to prevent and reduce the human, environmental, and economic costs of extreme weather. (Reporting and Editing by Rod Nickel.)
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UK Trade remedies body recommends country specific quota caps for steel imports
The Trade Remedies Authority of Britain (TRA) suggested on Tuesday that country specific quotas should be imposed for certain categories steel imports in order to protect its domestic industry. Since the beginning of the year, Britain has tried to protect its domestic steel industry from an oversupply in the world. It has also extended safeguards on the domestic market and has maintained anti-dumping restrictions for some imports. According to the latest recommendation of TRA, quotas will be implemented in October 2010 and limit how much steel certain countries can import duty-free. Nick Baird, TRA Chair said that the recommendations will "protect the UK steel industry against the destabilising effects of global overcapacity". In March, the TRA expanded its review of steel after U.S. president Donald Trump announced a 25 percent tariff on this sector. Last week, Britain reached an agreement to eliminate these tariffs. However, the two parties must still formalise their agreement. Sector representatives are unsure when the levies will be removed. The U.S. Steel Tariffs are still in place for other countries. This means that there is more available steel on the market, which could end up being diverted towards Britain. Last month, the UK government intervened in order to take control of the last producer of virgin steel in the country. According to Thursday's recommendation, each country will only be able to supply 40% of the remaining quota for three categories of steel, whose UK imports are dominated respectively by Vietnam, South Korea, and Algeria. Imports above that amount will be subjected to a 25% duty. The TRA recommended that the "carry-over" of quotas unused for a quarter into the following quarter be abolished from July. The recommendations will be subject to a further review and approval by the government. UK Steel, however, said that the measures "did little to effectively protect the UK steel industry against the vast quantities of surplus steel seeking to be dumped on our shores". Gareth Stace, UK Steel's Director General, said: "It is time for the government to take action and replace the ineffective steel protections with a robust mechanism of trade defense based on quotas that are designed to fit the realities of the market today and the rest of the world." Reporting by Muvija, Alistair Smout, and Catarina demony. Mark Potter (Editing)
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US sanctions companies that it claims sent Iranian oil to China
The U.S. Treasury Department imposed sanctions Tuesday on more than twenty companies that are part of a network it claims has been sending Iranian oil to China for years. This comes days after Iran and the United States completed a fourth round nuclear talks. Treasury reported that the network was responsible for shipping oil worth billions to China, on behalf of Iran’s Armed Forces General Staff, and Sepehr Energy (the front company of Sepehr Energy), Treasury stated. The department sanctioned CCIC Singapore PTE and other companies, including CCIC Singapore PTE. It said that CCIC Singapore PTE helped Sepehr conceal the oil's Iranian source. They also carried out the pre-delivery checks required before oil could be transferred to China. Huangdao Inspection and Certification Co Ltd was also sanctioned for assisting Sepehr. Treasury sanctioned Qingdao Linkrich International Shipping Agency Co Ltd, which they said assisted Sepehr Energy chartered vessels with their arrival at Qingdao Port and their discharge as its designated agent. According to Tammy Bruce, State Department spokesperson, the sale of oil funded the development of Iranian missiles and drones as well as nuclear proliferation and attacks on the U.S. Navy, Israel and ships in the Red Sea by the Houthi militants group. Bruce stated, "We will continue using all tools available to us to hold the regime responsible." The sanctions imposed on Tuesday are the latest to be imposed since U.S. president Donald Trump re-instituted his "maximum press" campaign against Iran. Prior to Tuesday's sanctions, China's "teapots" of independent oil refineries were targeted. Analysts said that the measures had increased pressure on Iran and China. However, Washington would need to impose sanctions against China's state owned enterprises in order to have a broader impact. Tehran and Washington both say they prefer diplomacy in resolving the decades-old nuclear dispute. However, they are deeply divided over several redlines including Iran's enrichment of uranium. (Reporting and editing by Nick Zieminski, Matthew Lewis and Timothy Gardner in Washington)
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Copec warns that the China pulp market may be challenged by US tariffs
Empresas Copec, a Chilean conglomerate of industrial companies, said that the Chinese market could be more difficult for its forestry product if paper manufacturers struggle to increase sales due to uncertainty about U.S. Tariff policies. In a recent presentation, Cristian Infante, the head of Copec’s forestry division Arauco, said that most of the customers who export to the U.S. don’t really know the price at which their goods will be sold. "They're trying as hard as they can to buy as little." Arauco sells wood panels and pulp worldwide and contributes to the majority of Copec’s earnings. However, its core earnings fell by over 22% during the first quarter of 2025 due to lower pulp prices and smaller volume shipped. Infante warns that prices may continue to fall in May. When Chinese customers start to feel that prices are near the bottom of the market, they'll start talking. "When that will happen, is a good question," he said, noting recent news about Talks between the U.S. had made futures markets jump. Infante, Copec's U.S. Market Director, said that he viewed the market as stable at the moment, despite the fact that costs for resins used to make wood panels had increased due to the volatility of new import tax policies. He said, "I wouldn’t say that it’s booming." "This volatility we've experienced due to the tariff problem has affected the market." Copec, however, said that in Europe, uncertainty and concern are increasing due to the potential implementation of new U.S. Tariffs and possible trade conflicts with other nations. (Reporting and editing by Kyra Madry; Sarah Morland is the reporter)
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Petrobras revises strategic plan in response to falling oil prices
Magda Chabriard, the chief executive of Brazil's state-run oil firm Petrobras, told analysts on Tuesday that it would be revising its five-year strategy plan because Brent crude oil is now cheaper. Chambriard stated that a Brent price of $65 would force the company to simplify its projects. The firm added that now was the time for cost-cutting measures and austerity. When the price increases, we are more willing to share ideas. Chambriard said that when the price drops, it's time to tighten up. Petrobras will unveil its new strategic plan by the end of this year. Fernando Melgarejo, the Chief Financial Officer of the oil giant, said that it is also taking cost-cutting steps, while maintaining the $18.5 billion capital expenditure estimate for 2025. Petrobras will first focus on reducing costs, simplifying projects, and prioritizing those projects that generate positive cash flow on a short-term basis. Melgarejo said, "We will continue to study (cost-cutting measures)." Fabio Teixeira, Gabriel Araujo (Reporting)
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British stocks fluctuate as investors evaluate US inflation and UK labour market reports
British stocks finished mixed on Tuesday as investors weighed a slight increase in U.S. Inflation data while signs of a slowing UK labour market fueled speculation about the Bank of England’s future rate decisions. The blue-chip FTSE 100 index was almost flat, but the domestically focused midcaps index rose 0.6%. Consumer prices in the United States rebounded modestly in April. They rose 0.2%, after a dip of 0.1% in March. The inflation rate is expected to increase in the coming months, as tariffs will raise import costs. After the report, traders bet that the Federal Reserve will delay lowering interest rates till September. Britain's job market also showed signs of slowing down, as both employment and wage growth slowed. This will likely reassure the BoE about the waning inflation pressures. Last week, the central banks cut rates by 25 basis point to prepare for the anticipated impact of U.S. President Donald Trump’s tariffs. However, a surprising three-way split between policymakers dampened expectations that future actions would be accelerated. Industrial metal miners, which are a component of the stock market indexes gained 1.4% in line with increases in copper prices. The energy sector gained 1.1% after crude oil futures rose more than $1 per barrel. Shell, the heavyweight in the FTSE 100 index, led the way with a 1.2% increase. DCC, a provider of sales and marketing services, fell 6.5% to the bottom blue-chip index following a 2025 adjusted operating income below estimates. GSK's stock fell by nearly 3% following the announcement that it and its partner iTeos Therapeutics would be discontinuing lung cancer drug development. Global stocks rose on Monday after the U.S. announced that it would suspend its trade war with China for 90 days. They will also remove other measures and reduce reciprocal duties while they negotiate an agreement more permanent. Sanchayaita, Ragini and Twesha in Bengaluru. Edited by Shreya biswas and David Gregorio.
Dollar drops, US inflation increases futures, and risk appetite is heightened
Dollar fell, and U.S. Stock Futures rose on February 2, after data showed U.S. Consumer Inflation picked up less in April than expected. This was when President Donald Trump announced a series of tariffs which have caused havoc to global markets and supply chains.
On Monday, the U.S. announced that it would suspend its trade war with China for 90 days. It will also reduce reciprocal duties while negotiating a permanent agreement.
The agreement has reignited the appetite of investors for stocks, commodities and cryptocurrencies. Tuesday's inflation numbers have also helped fuel this move.
The Bureau of Labor Statistics reported that its Consumer Price Index (CPI), which measures consumer prices, rose by 0.2% from March to April. This brings the annual rise from 2.4% to 2.3%.
Economists polled had predicted a rise of 0.3% per month and 2.4% per year.
The dollar continued to lose ground against a basket currency, while the euro rose 0.4% in a single day and reached a high of $1.113.
Futures for the S&P 500, Nasdaq, and Dow Jones rose between 0.2-0.3%, suggesting that Wall Street will start the week with a modestly better start. The S&P gained 3.3% after the U.S./China news.
Peter Cardillo is the chief market economist for Spartan Capital, a New York-based firm.
The report indicates that Fed officials should be cautious, and the stance they've taken for the moment is likely the best course of action.
After the Geneva talks, the U.S. announced it will reduce tariffs on Chinese imports from 145% to 30%. China also said that it would lower duties on U.S. imported goods from 125% to 10%.
The change in U.S. China trade relations has caused traders to reduce expectations of Federal Reserve rate reductions, believing that policymakers will have more flexibility to lower rates as inflation risks decrease.
The traders are now pricing in 56 basis point cuts for this year. This is down from April's forecasts of over 100 basis points, when the fears of Trump's Tariffs were at their highest.
Cardillo stated that "the Fed is on the right track and until there are any real changes in the trade war by June, a rate cut in June remains in doubt."
Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture.
Christopher Hodge said that the tariffs would still be higher after all was said and done and this will have a negative impact on U.S. economic growth.
The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024.
After the inflation figures, U.S. Treasury rates dipped below their one-month highs of Monday. The benchmark 10-year rate was down 1.4 basis point on the day, closing at 4.443%.
Oil rose by 0.9% to $65.48 per barrel, continuing Monday's rally of 1.2% to a 2-week high over $66 a barrel. Gold increased 0.4% to $3.246 per ounce after falling 2% on Sunday.
(source: Reuters)