The ongoing trade tensions between the European Union (EU) and the United States have taken a new turn, with the US imposing fresh demands on the EU that threaten to hollow out the deal struck by President Trump. Meanwhile, the risk of the French general election receding appears to be fading, according to the outgoing Prime Minister. In other developments, lawmakers in the US are calling for broader bans on chipmaking tool sales to China, while the European Central Bank (ECB)’s Executive Board Member, Luis de Guindos, has indicated that a rate cut may not be the next move.

In Europe, the German industrial slump deepened due to a plunge in auto production, and Japan’s Economy Minister is expected to leave his post soon. In addition, New Zealand delivered a jolt to its fragile economy with a 50 basis point cut, while API reported that US crude inventories rose by 2.8 million barrels. Iraq and Exxon are set to sign an agreement for the Majnoon oil field on Wednesday, and xAI is expected to raise $20 billion after Nvidia and others boosted their round.

In other news, Meta and Apple are close to settling EU antitrust cases, while Google is set to bet big on India with a $10 billion data hub plan. Lloyds and Barclays shares jumped as the Financial Conduct Authority (FCA) softened its blow on motor finance, and SoftBank is buying ABB’s robotics arm in a $5.4 billion deal. Furthermore, Witkoff and Kushner are expected to join Israel-Hamas talks in Egypt.

The escalating trade tensions between the EU and US have raised concerns about the potential impact on global economic growth. As the two sides continue to negotiate, it remains to be seen how these demands will be addressed and what implications they may have for the future of international trade.