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July 4, 2025

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In Stocks

Europe markets open: equities decline; China sets up to 34.9% tariff on EU drandy

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European stock markets started Friday’s trading session in the red across the board, with the regional Stoxx 600 index declining as investors reacted to news of China imposing high duties on European Union brandy.

This development, coupled with ongoing uncertainty surrounding US tariff deadlines, has cast a shadow over markets, with French luxury and drinks companies taking an early hit.

A red start to Friday: China’s brandy duties spook markets

At the open, the pan-European Stoxx 600 index was down 0.4%.

The negative sentiment was widespread, with the UK’s FTSE 100 down 0.32%, Germany’s DAX down 0.29%, and France’s CAC 40 leading the losses with a decline of 0.72%.

This downturn follows a higher close on Thursday, when global equities were initially boosted by a much stronger-than-expected US jobs report.

The primary catalyst for Friday’s weakness is a final ruling from China’s commerce ministry on its investigation into European Union brandy.

According to a ministry release (via Google translation), the investigation concluded that the bloc has engaged in the dumping of the spirit.

Reuters reported that a tariff rate on EU brandy will now be set at up to 34.9% for a period of five years, starting from July 5.

This news had an immediate impact on French drinks sellers.

Shares of Pernod Ricard were down 3.3%, Remy Cointreau fell 4.5%, and luxury conglomerate LVMH, which also has a significant spirits business, saw its stock drop 2.1%.

The tariff clock is ticking: US deadlines and trade talk jitters

Adding to the cautious mood, investors are acutely aware that US President Donald Trump’s July 9 deadline for tariff negotiations is fast approaching.

This deadline could see duties on key trading partners, including the European Union, spike unless a comprehensive trade deal is reached.

President Trump has stated that the US will begin sending letters to countries setting out their specific tariff rates on exports to the US, with 10 to 12 nations expected to receive theirs today.

US Treasury Secretary Scott Bessent told Bloomberg that he expects around 100 countries will face a 10% levy, which serves as the baseline for the so-called ‘reciprocal’ tariffs.

The EU, meanwhile, has said it is closing in on a “framework” trade deal with the US, but has also acknowledged that a full agreement will be impossible to reach by the July 9 deadline, leaving the final outcome uncertain.

While Wall Street is officially on a break for the 4th of July holiday today, investors will undoubtedly be keeping a close eye on their phones for any updates on these trade developments, as well as the fallout from President Trump’s flagship megabill, which recently passed in Congress and promises a host of changes to taxes, social spending, and energy policy.

Corporate moves: Air France-KLM to take majority control of SAS

In the corporate arena, airline group Air France-KLM announced that it is initiating proceedings to acquire a majority stake in the Scandinavian airline SAS.

The move will see Air France-KLM increase its holdings in the company to 60.5%, up from its current position of just under 20%.

The airline group hopes to close the deal in the second half of next year.

The move is seen as a stabilizing force for the Scandinavian carrier.

“The move brings not just stability but will also allow for deeper industrial integration,” SAS CEO Anko van der Werff said in a statement, signaling a new chapter for the airline under majority ownership by the Franco-Dutch group.

The post Europe markets open: equities decline; China sets up to 34.9% tariff on EU drandy appeared first on Invezz

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In Business

Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

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Constellation Brands on Tuesday reported quarterly earnings and revenue that missed analysts’ estimates as beer demand slid and tariffs on aluminum weighed on its profitability.

Still, the brewer reiterated its forecast for fiscal 2026, showing confidence that it can hit its financial targets despite the weaker-than-expected quarterly performance and higher duties.

Shares of the company fell less than 1% in extended trading on Tuesday evening but rose 3% during morning trading on Wednesday after the company’s conference call.

The stock has shed more than 20% of its value this year, fueled by concerns about how the higher duties imposed by President Donald Trump would affect demand for its beer.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

The report, which covers the three months ended May 31, includes the start of Trump’s tariffs on canned beer imports in early April. He also hiked trade duties on aluminum to 25% in mid-March and to 50% in early June.

Both imported beer and aluminum are crucial to Constellation’s beer business, which accounts for roughly 80% of the company’s overall revenue. Constellation’s beer portfolio only includes Mexican imports, like Corona, Pacifico and Modelo Especial, which overtook Bud Light as the top-selling beer brand in the U.S. two years ago.

Constellation reported fiscal first-quarter net income of $516.1 million, or $2.90 per share, down from $877 million, or $4.78 per share, a year earlier. Constellation’s operating margin fell 150 basis points, or 1.5%, in the quarter, in part driven by higher aluminum costs.

Excluding items, the brewer earned $3.22 per share.

Net sales dropped 5.8% to $2.52 billion, fueled by weaker demand for its beer and the company’s divestiture of Svedka vodka.

Constellation is still facing softer consumer demand, CEO Bill Newlands said in a statement. He attributed the weaker sales to “non-structural socioeconomic factors.” Constellation’s beer business saw shipment volumes fall 3.3%, caused by weaker consumer demand.

Last quarter, Newlands said Hispanic consumers were buying less of the company’s beer because of fears over Trump’s immigration policy. Roughly half of Constellation’s beer sales come from Hispanic consumers, according to the company.

But on Wednesday, Newlands demurred when asked about Hispanic consumer sentiment, saying that all shoppers are concerned about higher prices.

“When you see a fair amount of change, both Hispanic and non-Hispanic consumers are concerned about inflation and about cost structure,” Newlands said.

He added that consumers aren’t going out to eat as much and hosting fewer social occasions, which means they are drinking less beer. Still, he maintained that consumer interest in drinking beer hasn’t waned; while shoppers’ overall spending on beer has fallen, their relative spend on beer compared with their total grocery bill has held steady.

For fiscal 2026, Constellation continues to expect comparable earnings per share of $12.60 to $12.90. The company is projecting that organic net sales will range from declining 2% to rising 1%.

This post appeared first on NBC NEWS

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In Politics

Trump administration swarms SCOTUS with emergency requests and sees surprising success

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The Supreme Court ended its term last week, but the justices aren’t done yet, partly due to a legal blitz President Donald Trump has strategically deployed in his second term, one that’s proven surprisingly effective in advancing his sweeping agenda.

Lawyers for the Trump administration filed their 20th emergency application to the Supreme Court Thursday in just a 23-week period. 

The dizzying pace of applications comes as the administration looks to advance some of Trump’s sweeping policy actions. And, in many cases, the court’s 6-3 majority has given the administration the green light to proceed. 

The high court has ruled in Trump’s favor in the majority of emergency applications, allowing the administration to proceed with its ban on transgender service members in the military, its termination of millions of dollars in Education Department grants and its firing of probationary employees across the federal government, among many other actions.

Like most emergency orders, the rulings are often unsigned, giving little indication what the justices might be thinking.

Emergency applications — and the Supreme Court’s responses — aren’t meant to offer lasting relief. But Trump has found success using a ‘move fast and break things’ strategy to push key requests through the court’s so-called ‘shadow’ docket.

For context, Trump has filed more emergency applications in five months than his predecessors did in years. Former President Joe Biden submitted just 19 over his entire term, while presidents Obama and George W. Bush filed only eight combined during their time in office.

In the interim, the strategy has allowed him to enforce many of the sweeping executive orders he signed upon taking office. These orders were met with hundreds of lawsuits across the country and blocked by many lower courts, prompting the administration to appeal them, again and again, through the federal judiciary. 

For now, those near-term wins have energized Trump allies, allowing them to press forward with a blitz of executive actions and claim ‘victory,’ however temporary. The approach allows Trump to advance major policy priorities without relying on a slow-moving Congress.

This post appeared first on FOX NEWS

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