Global News July 2025
Week 29: Markets opened the week on a more optimistic note, as the IMF eyes stronger global growth. But policy caution remains, especially in Europe, where central bankers are closely watching rising tariff threats. In Luxembourg, inflation edges up, and a major beverage merger just got the green light. Let’s dive in.
IMF Set to Raise Global Growth Forecast, But Warns Trade Tensions Could Undermine It
Picture: IMF Media Center
The IMF is preparing to raise its 2025 growth outlook, citing lower inflation and more stable financial markets. However, it’s not all smooth sailing: persistent trade disputes, particularly those involving tariffs, remain a significant threat. Officials have singled out emerging markets as particularly vulnerable due to their high debt loads and tighter financing conditions. The Fund also called for faster progress on sovereign debt restructuring for developing economies. The takeaway? Recovery is on the table, but it’s fragile and uneven.
ECB Likely to Hold Rates as Trade Risks Cloud Outlook
Picture: Politico.eu
The European Central Bank is expected to keep interest rates unchanged at its upcoming policy meeting. Officials say it is too early to react to the threat of new U.S. tariffs, although they acknowledge that the risks could weigh on eurozone growth and inflation. Economists believe that unless higher tariffs materialise, rate cuts are likely delayed until September. The ECB is walking a careful line between maintaining price stability and avoiding premature action. For now, it is taking a wait-and-see approach.
UK Insolvencies Drop in June, but Economic Headwinds Persist
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Corporate insolvencies in England and Wales fell by 8% in June, offering a short-term boost to business sentiment. Compared to the same month last year, insolvencies are down 16%. The fall is mainly due to stronger-than-expected earnings and improved credit access, though analysts remain cautious. Inflation, weak consumer demand and global uncertainty continue to pressure companies. Investors are watching closely to see whether this signals a turning point or just a temporary dip.
Luxembourgish News July 2025
EU Clears Brasserie Nationale Takeover, but Demands Key Sell-Offs
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Brasserie Nationale’s acquisition of Boissons Heintz, two of Luxembourg’s largest beverage distributors, has been conditionally approved by the European Commission. Regulators required the company to divest a significant portion of its Horeca business to maintain competition. An independent trustee will oversee the sale. The Commission raised concerns that the deal could reduce consumer choice and strengthen Brasserie Nationale’s position, especially around its Lodyss brand. The approval highlights the EU’s close scrutiny of market concentration in small economies.
Source: https://www.reuters.com/en/eu-gives-conditional-approval-brasserie-nationale-takeover-boissons-heintz-2025-07-17
Luxembourg Inflation Rises to Highest Level in a Year
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Luxembourg’s inflation rate rose to 2.2% in June, its highest annual figure in 12 months. The increase was driven mainly by housing and utility costs, which surged 5.7% , along with food and non-alcoholic beverages, which rose 2.6%. Transport costs saw only a mild rise of 1.0%, while communication prices declined significantly. On a monthly basis, inflation climbed 0.5%. The figures may influence ECB monetary policy and trigger automatic wage indexation domestically.
Source: https://www.rttnews.com/3551136/luxembourg-inflation-rises-to-1-year-high.aspx
