Money Talks Report 12/03/2025.
Market Report.
?? The European Union will impose counter tariffs on $28.33 billion worth of U.S. goods from next month in response to U.S. tariffs on steel and aluminum. European Commission President Ursula von der Leyen stated that the EU's countermeasures will match the economic scope of the U.S. tariffs, and will be introduced in two steps starting from April 1. The increased U.S. tariffs of 25% on steel and aluminum imports took effect on Wednesday as prior exemptions, duty-free quotas, and product exclusions expired. Von der Leyen said the EU is ready to engage in meaningful dialogue and has entrusted Trade Commissioner Maros Sefcovic to resume talks to explore better solutions with the U.S.
?? The White House doubled tariffs on its northern neighbor's steel and aluminium imports to 50% at one point during a contentious but short-lived tariff dispute with Canada. That came after Premier Doug Ford of Ontario announced he would levy a 25% tax on electricity exports to the United States. Later, after the premier of Ontario announced he would halt the 25% levy on electricity from US states, the White House announced that Trump was dropping his proposal to double metal tariffs on Canada.
?? British police have arrested the 59-year-old captain of the cargo ship Solong on suspicion of gross negligence manslaughter after it crashed into the tanker Stena Immaculate carrying U.S. military jet fuel off the east coast of England. The collision caused fires and explosions, releasing fuel into the sea and potentially posing a danger to wildlife. One crew member is assumed dead. The surrounding area is home to large colonies of protected seabirds and a delicate coastal ecosystem, raising concerns about the environmental impact of the jet fuel spill. The investigation will involve authorities from the U.S. and Portugal, the flag states of the vessels involved.
Market View:
?? The falls in the US markets continued during yesterday's session. S&P 500 futures appear to have taken a brief pause after the declines, settling in the 5600 point zone as possible support, currently trading at 5580 points. For their part, Nasdaq 100 futures even fell below 19,150 points, although they managed to recover some ground and are now at 19,400 points.
?? The dollar continued to weaken, and the dollar index (DXY) approached 103 points, although it subsequently rebounded upwards and is currently trading at 103.65 points. The euro/dollar exchange rate took advantage of this situation, continuing its rise to approach 1.0950 during yesterday's session, but subsequently falling back to the current 1.0890.
?? The rise in German bonds, with the 10-year bond yielding practically 2.90%, could be attracting more capital towards the euro. In contrast, the yield on the US bond is falling, trading below 4% for 2 years, which suggests a reduction in the differential between the US bond and the German bond.
???? In Europe, the DAX 40 seems to be consolidating support above 22,000 points. Despite the setbacks, it remains close to its all-time highs and is currently trading at 22,495 points.
??? The crude oil market continues to show weakness, with Brent crude trading in the $69.65 per barrel zone.
?? Gold, after having lost $2,900 per ounce on Monday, has recovered and is now trading at $2,915 per ounce.
? Finally, Bitcoin remains above $80,000, having bounced back to $83,730 yesterday. However, it has fallen again and is currently trading at $81,280.
Geopolitics:
?? The United States has agreed to resume military aid and intelligence sharing with Ukraine after Kyiv said it was ready to support Washington's proposal for a 30-day ceasefire with Russia. U.S. Secretary of State Marco Rubio said the U.S. will now take the ceasefire offer to Russia, and the ball is in Moscow's court.
???? However, President Vladimir Putin has previously stated he is against a ceasefire and would seek a deal that safeguards Russia's long-term security. "Every time Ukrainians cheat, they lose and lose territory", said Sergei Lavrov, foreign minister of Russia in an interview with American bloggers. "If they had cooperated and implemented their own initiative, they would still have the 1991 borders without Crimea, without some part of Donbass."
???? Europe continues with its parallel agenda on Ukraine: French President Emmanuel Macron has gathered the chiefs of staff of more than 30 European and NATO countries, including Spain, in Paris to discuss credible security guarantees for Ukraine. Macron has insisted that Ukraine's allies must ‘assume’ their responsibilities, as ‘this is the moment when Europe must throw its full weight behind Ukraine and itself’. This meeting has taken place in parallel to the announcement of an agreement between the United States and Ukraine for a temporary 30-day ceasefire, which will now be presented to Russia.
?? In relation to the sabotage suffered by Tesla factories in the USA, President Trump has announced that any act of violence against Tesla dealerships will be considered terrorism.
?? In addition, Donald Trump bought a Tesla to support Elon Musk, after the billionaire suffered a loss of $29 billion in his net worth in a single day, according to the Bloomberg Billionaires Index.
???? Greenland's pro-business opposition Demokraatit party won the parliamentary election, gaining 29.9% of the votes. The election was influenced by U.S. President Trump's promise to take control of Greenland, a semi-autonomous Danish territory. Greenland holds significant natural resources but has been slow to extract them due to environmental concerns, severe weather, and China's control of the sector. It has become a geopolitical battleground, with Russia and China also intensifying military activity in the region.
??? Disturbing revelation: it has been discovered that pardons granted by Biden bear the same automated digital signature, benefitting the likes of Biden's relatives, Anthony Fauci, General Milley, the January 6 Committee and Gerald Lundergan, which could suggest that executive orders, laws and pardons issued under his administration might not be legally valid.
???? Political instability in Portugal: The Portuguese Prime Minister, Luís Montenegro, has failed to win a vote of confidence in Parliament, leading Portugal to its fourth elections in five and a half years. The current political crisis stems from suspicions of a conflict of interest related to the prime minister's family business. Montenegro has proposed a 15-day commission of inquiry, but the Socialist Party (PS) has rejected it on the grounds that the timeframe is not long enough for a ‘serious scrutiny’. Since 2019, Portugal has not completed a single legislative period, leading to new elections every few years.