U.S. strikes on Iran and Europe’s 5% defense problem
After a week of global market tremor, the reactions to Iran’s nuclear facilities will be the front and center in the coming days. Meanwhile, three heavy events can shape the economic and geopolitical mood. From the NATO tensions in The Hague to trade talks in Tianjin and the industrial optimism in Berlin, investors will closely monitor.
- The scene was prepared for tense talks at the NATO summit in Hague. Wednesday US President Donald Trump is expected to put more pressure on Europe to increase defense expenditures
- Summer Davos, Tianjin, China takes place. Tuesday -Thursday While China trade talks continue
- Industrial Day in Germany Monday and Tuesday As the growth engine starts again
USA-Israeli
To address the nation on Saturday evening, the US President Donald Trump said that strikes in Iran’s three nuclear areas were “a magnificent military success” that completely destroyed the country’s largest enrichment facilities.
Strikes showing that the US had a direct military attack on Iran for the first time points to a dramatic rise in geopolitical tensions. Trump’s claim about the result of the operation could not be independent.
Iranian Foreign Minister Abbas Araghchi crooked The United States describes them as “ugly” and describes the sovereignty, interest and all options to defend the country’s sovereignty. ” Global investors will try to evaluate the spreader.
In defense
Trump and NATO meetings have a history of dramatic. In 2017, the White House leader constantly questioned the American commitment to alliance and Other members accused the general share of defense expenditures for “large amounts of money”.
Until 2025, Trump and the next NATO leaders summit will take place on Wednesday at The Hague in the Netherlands. Some problems are familiar – defense expenditures increase in Europe, while countries such as Spain are at risk of negotiations by calling 5% of the GDP target as “unreasonable”. In addition, the war in Ukraine continues. Meanwhile, other problems are increasing hostilities between Israel and Iran, as well as other neighbors in the Middle East, and limit international relations.
US Ambassador to NATO Matthew Whittaker, CNBC’s “Squawk Box Europe”, the region “5% target negotiation tactic should not expect a free journey from the United States, he said.
Summer Davos
On the other side of the world, Tianjin, the Chinese city, hosts the new champions meeting of the World Economic Forum, also known as Summer Davos between Tuesday and Thursday. Since trade negotiations with the United States are still in progress, technology dominates the agenda at a difficult time for relations between China and the West.
Trump may have purchased more time for Tiktok, and China’s social media platform has extended its deadline to September. Nevertheless, the latest trade talks in London led to an uncertain stance between the two superpowers without an official reading. Immediately after these negotiations, US Trade Secretary Howard Lutnick, who spoke to CNBC, was asked that the existing tariffs on China would not change again, “You can definitely say that.”
This can do very little to alleviate the conversations between the Chinese officials and corporate leaders in Tianjin and the international delegates who will seek more certainty than both the White House and Beijing.
Growth engine
Near home, the Industrial Conference Day in Germany on Monday and Tuesdays. This annual meeting in Berlin emphasizes German economic policy and global trade strategies. It may be a good time for the new government to start the so -called growth engine of the new government with the four economic institutes. upgrade 2025 and 2026 GDP growth, estimates for the largest economy in Europe.
Recently, during a trip to Washington, DC, the German Chancellor Friedrich Merz survived the anger of other world leaders in the Oval Office, and Trump’s focus was dominated by Elon Musk. However, since the country’s automobile industry organs have domestic automobile manufacturers, not all open ways for Germany shoulder Approximately 500 million euros ($ 576.1 million) for costs associated with Trump’s import tariffs.
