The Competitiveness Compass, recently outlined by European Commission President Ursula von der Leyen, sets a strategic direction for Europe’s economy amid increasing global competition[1]. It builds on insights from the Draghi Report and paves the way for the upcoming Clean Industrial Deal. The report emphasizes the link between decarbonization and competitiveness, introducing ...
#MacroFriday: The Great Divergence
‘Es ist die Wirtschaft, Dummkopf!’ Growth Paths Between the European and American Economies Continued to Diverge in 2024 This week’s data releases included the first estimates of Q4 economic growth in the US and the Eurozone. The US economy maintained its solid growth trajectory, expanding by 0.56% in Q4 and 2.8% over the course of 2024. Strong consumer spending was th ...
Een Chinese Black Swan? DeepSeek zet techbeleggers op scherp
2025 is nog maar net begonnen, maar maandag leken de markten een Black Swan te beleven. Techgiganten kregen wereldwijd harde klappen na de aankondigingen van het Chinese AI-lab DeepSeek. Het bedrijf claimt betere resultaten met Reasoning Gen-AI te behalen dan de Amerikaanse Mag7, en dat met beperkte middelen en verouderde Nvidia-chips – tegen een fractie van de kosten van Micro ...
The competitiveness of the European chemical industry
The chemical sector is a cornerstone of our European economy. It generates €655 billion in annual turnover and powers other industries, ranging from pharmaceuticals to automotive manufacturing. Despite its foundational role, the chemical industry faces significant challenges that threaten its competitiveness, like many other industries in this green transition. This month, the ...
#MacroFriday: EU Trade in Goods with US
Trump threatens the EU with tarrifs as he eyes the European trade surplus with the US.In December, we discussed how he threatened the US major trading partners without mentioning the EU. This changed on Tuesday. In recent years, the European Union (EU) has experienced a notable increase in its trade surplus with the United States. In 2023, the EU's trade surplus in goods with ...
Fiery Flash: Softbank
De Fiery Flash van deze week is het Japanse SoftBank Group. Dit beursgenoteerde conglomeraat zag de voorbije week een opmerkelijke koersstijging van 16%, waardoor de beurskapitalisatie uitkwam op ongeveer 98 miljard USD. Alvorens we ingaan op de redenen achter deze plotse stijging, eerst wat meer over het bedrijf. SoftBank Group is een in Tokio gevestigde investeringsholding, ...
#MicroFriday: Markets Price in Another Year of Strong Earnings Growth for S&P 500 Companies in 2025
The second half of January is here, which means that results season is starting. In the last few days, several large American financial institutions have already published their fourth-quarter results, reporting earnings well above consensus expectations. Banks, in particular, saw their profits rise and indicated growing optimism among investors and CEOs since the US elections. ...
Are demographics indeed destiny?
A Tale of Two Asian Giants The graph below definitely is a strong contender for ‘chart of the year 2024’. For the first time, interest rates on long-term (30 years) Chinese government bonds fell below Japanese ones. This move is a reflection of economic weakness in China with expectations of increased monetary easing. A stark contrast with Japan's gradual policy normalization. ...
Fiery Flash: LVMH
The world’s largest luxury company, LVMH, faced the cancellation of its Watch Week event in Los Angeles due to wildfires. However, there was positive news for shareholders as the company’s stock surged by approximately 8% over the past five days. This rally was driven by a mix of company-specific and sector-wide developments. Notably, analysts at Bank of America upgraded LVMH’s ...
Climate metrics that matter: tracking 2025’s progress
Last week, we examined the state of climate change and the challenges and opportunities that 2025 brings. This week, we delve into the indispensable tools guiding our climate efforts: metrics. It’s said that “measuring is knowing,” and in the fight against climate change, knowing where we stand is crucial. Six key indicators offer insight into our progress and setbacks: ...