TL;DR

Trump greenlights Nippon Steel/U.S. Steel deal; escalates EU tariff threats; Italy outlook upgraded by Moody’s.

Highlights

• Trump administration approves Nippon Steel’s $14.9B acquisition of U.S. Steel ; shares surge 20% after-hours 1.
• Trump threatens 50% tariffs on EU goods and 25% on Apple iPhones made abroad; EU readies €100B in countermeasures. Euro Stoxx50 -2.17%, banks -4%, bitcoin -2.6% 2.
• Moody’s upgrades Italy’s outlook to positive (Baa3) on improved fiscal metrics; Italian assets may benefit 6.
• U.S. Treasury grants Syria 180-day sanctions relief, authorizing broad economic transactions but excluding Russia, Iran, N. Korea 4.
• Brazil’s Ibovespa +0.40% as government partially reverses IOF tax hikes; real strengthens to R$5.65/USD 7.
• Russia launches major drone/missile attack on Kyiv; ongoing escalation in the region 3.
• Trump orders 50% reduction in National Security Council staff, shifting policy coordination to State and Defense 5.
• Solana launches permissionless Attestation Service for decentralized identity and compliance; Roam among first integrators 9.
• Federal judge issues full injunction against Trump executive order targeting Jenner & Block, citing First Amendment 8.
• Pentagon restricts press access, movement, and gym use; only one briefing held in 2025 11.
• Supreme Court Chief Justice Roberts pauses FOIA discovery against DOGE after Trump administration request 13.
• Trump defends China tariffs as job-creating, citing $10–12T in recent economic activity 14.

Commentary

The Trump administration’s approval of Nippon Steel’s $14.9B acquisition of U.S. Steel removes uncertainty around a high-profile cross-border deal, triggering a sharp after-hours rally in X and likely supporting sentiment in US industrials and M&A-related names. The deal’s conditions—keeping U.S. Steel’s headquarters in Pittsburgh and promises of job creation—signal a transactional approach to foreign investment under the current administration 1.

However, the US-EU trade environment is deteriorating rapidly. Trump’s threat of a 50% tariff on all EU imports and a targeted 25% tariff on Apple iPhones manufactured outside the US has already weighed on European equities and banks, while the EU’s €100B in potential countermeasures raises the risk of a broader trade conflict. US multinationals with European exposure, especially in autos, tech, and consumer goods, could see increased volatility. Bitcoin ’s drop alongside equities suggests risk-off sentiment is spreading across asset classes 2.

On the macro front, Moody’s upgrade of Italy’s outlook to positive offers a rare point of stability in European credit, with Italian financials and sovereign debt likely to see near-term support 6. Meanwhile, Brazil’s Ibovespa and real outperformed after the government walked back some capital control measures, signaling selective EM resilience even as global volatility rises on trade headlines 7.

Geopolitical risk remains elevated with Russia’s renewed strikes on Kyiv, but immediate market impact is limited 3. In crypto, Solana ’s new attestation service signals ongoing infrastructure development for compliance and onboarding, though risk appetite remains subdued 9. Traders should monitor further developments in US-EU and US-China trade, as well as any policy responses over the weekend.