This week has brought a flurry of important news that spans central banking decisions, trade policy, and corporate earnings reports. Here’s a rundown of the key highlights:

Trump’s Trade War Escalates: Steel and Aluminium Tariffs Hit 25%

In a move that promises to deepen the ongoing trade conflict, former President Donald Trump has decided to impose 25% tariffs on steel and aluminium imports. This escalation of the trade war comes amid rising global tensions and threatens to shake the foundations of international trade. The European Union (EU) has already voiced strong opposition, vowing to enact firm countermeasures in retaliation to the tariffs.

EU to Respond to Tariffs: Countermeasures Incoming

The EU has made it clear that it will not take these measures lying down. European leaders have promised to take action to protect their markets and industries from the impact of the newly imposed tariffs. These countermeasures could involve targeted tariffs on U.S. goods, marking another chapter in a long-running trade dispute between the U.S. and the EU.

Powell’s Senate Testimony: Navigating Strong Data Amid Rising Uncertainty

Federal Reserve Chair Jerome Powell made his way to Capitol Hill for his testimony before the Senate, presenting data that suggests a stable economic foundation. However, he cautioned that growing uncertainty – driven by both domestic and international factors – could impact economic forecasts and future decisions on monetary policy. While recent economic data is promising, Powell emphasized that the road ahead is fraught with risks.

US-EU Talks: A Potential Softening of Tariffs?

There is hope that continued dialogue between the U.S. and EU could soften the impact of these tariffs. European Central Bank (ECB) board member Martins Kazaks weighed in, noting that direct talks between the two sides may offer a pathway to de-escalate the situation and potentially alleviate some of the trade tensions.

Bank of England’s Mann: No ‘Cut, Cut, Cut’ on Rates

In the world of central banking, Bank of England (BoE) Governor Huw Mann expressed a firm stance against aggressively slashing interest rates. While many global economies have been exploring rate cuts in response to slowing growth, Mann rejected the “cut, cut, cut” approach, opting instead for a more measured stance. His comments reflect the growing concern over the balance between stimulating the economy and maintaining financial stability.

EU’s Ambitious AI Investment Plans: A €50 Billion Boost

The European Union is making strides to position itself as a global leader in artificial intelligence (AI) development. European Commission President Ursula von der Leyen revealed plans to inject a massive €50 billion into AI research and innovation. This investment is designed to fuel advancements in AI technology and help the EU compete with other tech giants like the U.S. and China.

OPEC’s Long-Term Outlook for Oil Markets

The Organization of the Petroleum Exporting Countries (OPEC) continues to take a long-term perspective on the global oil markets. Despite short-term volatility, OPEC’s focus remains on stabilizing prices and ensuring that supply and demand are balanced for the years ahead. The group has reaffirmed its commitment to supporting a stable energy market, crucial for the health of the global economy.

Corporate Earnings: Coca-Cola, Humana, DuPont, and More

Several major companies reported their quarterly earnings, offering a snapshot of the state of business across different sectors.

• Coca-Cola showed solid growth, with revenue up 6% to $11.5 billion in the fourth quarter, driven by strong demand in key international markets.
• Humana had a less stellar report, with its stock taking a hit as the company reported a wider-than-expected loss and guidance that fell short of Wall Street’s expectations.
• DuPont was a bright spot in the earnings season, with shares jumping 6% after the chemical giant posted a better-than-expected earnings report.
• Marriott’s 2025 profit forecast was lower than expected, with poor performance in China dragging down its outlook.
• AutoNation delivered a positive surprise, with Q4 earnings topping analysts’ expectations by $0.73 per share.
• BYD, a leader in the electric vehicle sector, revealed the rollout of advanced driver assistance technology for its EVs, in collaboration with DeepSeek’s AI technology.

Looking Ahead: Economic Uncertainty and Corporate Growth

As global trade tensions, central bank decisions, and corporate earnings continue to shape the economic landscape, one thing remains clear: uncertainty is high. The interplay of these factors will likely have profound implications on market sentiment and future growth trajectories. With central banks taking varied approaches and geopolitical risks on the rise, navigating the next chapter of the global economy will require careful attention and strategic foresight.