Global Economy News
LAST UPDATE: July 4, 2025
Full EU‑US trade deal ‘impossible’ before deadline, says Ursula von der Leyen
European Commission President Ursula von der Leyen said a fully detailed EU-US trade deal is unachievable by the July 9 deadline. Instead, both sides are pursuing an “agreement in principle” akin to deals with the UK and Vietnam to avoid 50% U.S. tariffs .
Insight
The shift toward a provisional framework deal indicates pragmatism amid limited time to address tariff threats. Accepting a broad-brush agreement minimizes immediate economic risks while delaying granular negotiations on industrial sectors and regulatory compatibility.
At Sintra getaway, central bankers mull threats to their domain
At the annual central bank retreat in Sintra, Portugal, policymakers discussed rising challenges to their authority, including political interference—especially from U.S. President Trump criticizing Fed Chair Powell—and the growing influence of stablecoins. Many reserve managers expressed concern over potential erosion of Fed independence and instability related to unregulated digital assets (reuters.com).
Insight
Central bankers are signaling deep anxiety: if political pressure grows and stablecoins proliferate without regulation, it could undermine monetary policy credibility and global financial stability. The repeated emphasis on defending traditional central banking roles suggests a concerted pushback against these emerging threats.
BRICS to launch guarantee fund to boost investment in member nations, sources say
BRICS is set to establish a guarantee fund under the New Development Bank to encourage private investment in member nations by reducing financing risks—modeled on the World Bank’s MIGA. With no immediate need for extra capital, the fund aims to mobilize $5–10 in private capital for every $1 guaranteed, launching projects starting in 2026 .
Insight
This represents BRICS’ growing ambition to rival Western-led development finance. By lowering investor risk, the fund could accelerate infrastructure and climate investments in emerging economies—strengthening their autonomy from global financial institutions. Deployment of existing NDB resources signals operational readiness.
