Nagel, the European Central Bank president, says Trump's tariffs could shake up global trade, but have limited impact on inflation
Joachim Nagel, a policymaker at the European Central Bank, said on Monday that the trade tariffs proposed by US President-elect Donald Trump “could represent an important turning point in the international trading system,” but their impact on inflation may be limited.
During his election campaign, Trump said he would impose sweeping tariffs on goods exported to the United States, regardless of their source.
The ECB policymaker noted that protectionist measures such as tariffs — which Nagel said were increasing among all G20 countries — could impact geoeconomics and global integration, noting that reversing the latter could lead to increased inflationary pressures.
“Although empirical studies show that the effect of global integration on domestic price dynamics is statistically significant, in economic terms it appears small,” Nagel said.
“In other words, while we can be quite certain about the direction of this effect, its magnitude appears minor. Accordingly, global integration would have to decline significantly to cause a noticeable rise in inflationary pressures. So far, we have not seen this demonstrated.”
-Sophie Kiderlein
Ukraine's GDP grew by 1.3% in October with the construction and transportation sectors shining
The Ukrainian economy grew by 1.3% year-on-year in October, citing support from the transportation and construction sectors, the Ukrainian economy ministry said in a Google-translated update on Monday. This follows a 3.8% year-on-year increase in September.
Gross domestic product in war-torn Ukraine rose 4.2% annually from January to October. The Ministry of Economy previously expected real GDP growth of 3.5% by the end of 2024.
The transportation and construction industries emerged as growth engines in October, according to First Deputy Minister of Economy Oleksiy Sobolev.
“Thanks to the implementation of recovery programs and increased demand for construction work, the construction industry continues to show upward dynamics. Among the engines of growth of the country's economy is also transportation – thanks primarily to the stable operation of the grain corridor. Finally, he added, the demand for manufacturing industry products, In particular, the defense industry sector determines the growth of this industry, but it nevertheless indicated a seasonal decline in agricultural activity due to the end of the harvest season.
-Roxandra Iordas
European markets mixed as trading begins
European markets were mixed as the trading week began on Monday, with the pan-European Stoxx 600 index down 0.07% shortly after the session opened.
Oil, gas and technology stocks fell by about 0.3% each, while mining stocks rose by about 0.5%.
Regional stock exchanges were mixed, with UK stock exchanges mixed FTSE 100 index The German DAX index rose slightly, while the French CAC 40 index fell slightly and in Italy FTSE MIB indicator It dropped to nearly 1%.
-Sophie Kiderlein
German exports rose 0.5% in the third quarter
German exports rose 0.5% in the third quarter compared to the same period a year earlier, the German statistics office reported Monday, reaching 384 billion euros ($405 billion).
The value of goods sent to EU and eurozone countries fell by 1% and 1.5% respectively in the three months to the end of September, while exports to countries outside the EU rose by 2.2%.
The United States was the most important trading partner outside the European Union, with exports rising by 3.8% to 41.4 billion euros in the third quarter. Meanwhile, exports to China fell by 9.4% to 21.8 billion euros.
-Sophie Kiderlein
European stocks are poised to rise at market open
European stocks are set to rise for the last time when the market opens on Monday.
UK FTSE 100 index The latter was on track to start the day 15 points higher at 8,084 points in Germany Dax It was scheduled to add 56 points to 19,278 and the French Kak The 40-point index was scheduled to rise by 23 points to about 7,299 points. Italy FTSE MIB indicator It was also on track to open higher, adding 158 points to 34,060.
-Sophie Kiderlein
Samsung shares rose more than 7% after a surprise $7 billion buyback plan
Samsung Electronics shares jumped on Monday after the company revealed a surprise plan to buy back about 10 trillion South Korean won ($7.19 billion) worth of its own shares over the next 12 months.
The South Korean technology giant's shares rose more than 7% in Seoul, after shares had already risen 7.21% on Friday, following news that the company had reached a preliminary agreement with its largest labor union, which went on strike in July.
Samsung last bought back shares in November 2017, according to data maintained by LSEG.
In a regulatory filing, the company said that shares worth 3 trillion won will initially be repurchased in the next three months and then will be cancelled.
Read the full story here
– Lim Hui Ji
CNBC Pro: Morningstar calls penny stocks in sector 'worthy of a place in everyone's portfolio'
One sector is trading at a 5% discount and is set to “perform well, especially if we enter a deflationary environment later in 2025,” says David Sekera, chief strategist at Morningstar.
Cikara also shared his forecast for US markets in the run-up to 2025.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
