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EU and US Edge Closer to Trade Deal Ahead of Tariff Deadline

Amid rising U.S. trade tensions and looming tariffs, the European Commission, led by Ursula von der Leyen, is intensifying negotiations with President Trump’s administration to secure a framework trade agreement. The aim is to halt enforcement of new steel (50%) and auto (25%) duties before the August 1 deadline, while preserving core EU industries like steel, autos, and agri-food. Although both leaders acknowledge progress, EU unity is strained, Germany is pushing for early exemptions on autos and steel tied to U.S. production, whereas France and smaller member states golf fringe issues. The EU openly warns it’s “ready for all scenarios,” including retaliation, but hopes a short-term deal eases headline pressure and steers transatlantic commerce back toward stability. Unlike previous deals that reduced tariffs long-term, this one may offer tariff relief with caveats as EU Trade Committee head Bernd Lange confirms U.S. resistance on tariff rollbacks and stand-still commitments.

If a limited framework deal materializes, it could ease concerns over Eurozone trade exposure especially with GBP/EUR cross-border partners. Reduced tariff risks might support industrial and auto stock performance as investors recalibrate earnings prospects. However, the absence of a full deal leaves uncertainty high, and further U.S. tariff threats like letters to other countries could trigger another market rotation into safe-havens and press the dollar higher.

Super Micro to Expand AI Server Manufacturing in Europe

Super Micro Computer $SMCI ( ▲ 0.09% ) aims to scale up its AI server production across Europe, according to CEO Charles Liang in a CNBC‑quoted interview at the Raise Summit in Paris. Liang stated that European demand for AI infrastructure is growing rapidly and that the company already has manufacturing facilities in the Netherlands, with plans to expand into additional locations to serve this dynamic market. Industry data supports this move. European AI compute capacity is forecast to grow over 30% annually through 2028, fueled by investments from hyperscalers, fintech firms, and edge computing applications. This expansion will reduce logistics and tariff risks while allowing Super Micro to better comply with local data regulations. Investors should monitor regional capex trends and server lead times, as the capacity increase could enhance SMCI’s growth trajectory and reinforce its position in the AI supply chain.

Massive boost planned as urgent demand from Ukraine and Middle East strains existing supplies

The US Army has proposed a fourfold increase in its Patriot missile procurement, aiming to raise annual buys from 3,376 to 13,773 missiles, contingent on congressional approval . This plan follows Pentagon concerns about depleted interceptors—only about 25% of operational needs have been met after extensive use in Ukraine and regional conflicts. The urgency has triggered strategic redirection of shipments and a pause in some deliveries to Ukraine as the U.S. prioritizes replenishing its defense stockpile. Lockheed Martin is ramping up PAC‑3 MSE production, aiming for 650 missiles per year by 2027. For the defense sector, this signals a notable tailwind—contractors like Lockheed $LMT ( ▲ 0.29% ) and Raytheon $RTX ( ▲ 1.0% ) stand to benefit from expanded orders, though production bottlenecks and evolving geopolitical tensions could add volatility.

Most Anticipated Earning Releases - July

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