US is starting to look like an emerging market after tariff shock, Euronext CEO says

PARIS (Reuters) - The United States is starting to resemble an emerging market more than a developed country, Euronext's CEO Stephane Boujnah said on Tuesday as financial markets remained volatile after the imposition of sweeping U.S. tariffs.
"Fear exists all over," the head of the pan-European stock exchange operator told France Inter radio. "The country (United States) is unrecognisable and we are living in a transition period. There is a certain form of mourning, because the United States that we had known for the most part as a dominant nation resembled the values and institutions of Europe and now resembles more an emerging market."
Boujnah said global financial markets were rotating assets and were trying to adapt to a United States that they do not recognise after U.S. President Donald Trump announced global tariffs on imports to the United States.
Trump has said the tariffs - a minimum of 10% for all U.S. imports, with targeted rates of up to 50% - would help the United States recapture an industrial base that he says has withered over decades of trade liberalization.
Boujnah said there was some good news in that oil prices and long-term rates were down, and that there were flows of money leaving the United States to be re-invested in Europe.

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Hamilton Spectator

4 hours ago

• Hamilton Spectator

Carney travelling to Europe for security, defence talks with EU, NATO

OTTAWA - Prime Minister Mark Carney will depart for Europe on Sunday for back-to-back summits where he is expected to make major commitments for Canada on security and defence. Carney will be joined by Foreign Affairs Minister Anita Anand, Defence Minister David McGuinty and secretary of state for defence procurement Stephen Fuhr at the EU and NATO summits, where military procurement and diversifying supply chains will top the agendas. The international meetings come as Canada looks to reduce its defence procurement reliance on the United States due to strained relations over tariffs and President Donald Trump's repeated talk about Canada becoming a U.S. state. Carney will fly first to Brussels, Belgium, starting the trip with a visit to the Antwerp Schoonselhof Military Cemetery where 348 Canadian soldiers are buried. He will also meet with Belgian Prime Minister Bart De Wever, European Council President António Costa and European Commission President Ursula von der Leyen. At the EU-Canada summit, Anand and McGuinty are expected to sign a security and defence agreement with the EU in what one European official described Friday as one of the most ambitious deals Europe has ever signed with a third country. The agreement will open the door to Canada's participation in the ReArm Europe initiative, allowing Canada to access a 150-billion-euro loan program for defence procurement, called Security Action for Europe. An EU official briefing reporters on Friday said once the procurement deal is in place, Canada will have to negotiate a bilateral agreement with the European Commission to begin discussions with member states about procurement opportunities. A Canadian official briefing reporters on the summit Saturday said the initial agreement will allow for Canada's participation in some joint procurement projects. However, a second agreement will be needed to allow Canadian companies to bid. At the EU-Canada summit, leaders are also expected to issue a joint statement to underscore a willingness for continued pressure on Russia, including through further sanctions, and call for an immediate and permanent ceasefire in Gaza. After Brussels, Carney heads to The Hague in the Netherlands for the NATO leaders' summit on Tuesday and Wednesday. There, Carney will meet with the King of the Netherlands and later with leaders of Nordic nations to discuss Arctic and transatlantic security. At the NATO summit, Carney will take part in bilateral meetings with other leaders. The summit agenda includes a social dinner hosted by the king and queen of the Netherlands and a two-and-a-half hour meeting of the North Atlantic Council. NATO allies are expected to debate a plan to hike alliance members' defence spending target to five per cent of national GDP. NATO data shows that in 2024, none of its 32 members spent that much. The Canadian government official who briefed reporters on background says the spending target and its timeline are still up for discussion, though some allies have indicated they would prefer a seven-year timeline while others favour a decade. Canada hasn't hit a five- per- cent defence spending threshhold since the 1950s and hasn't reached the two per cent mark since the late 1980s. NATO says that, based on its estimate of which expenditures count toward the target, Canada spent $41 billion in 2024 on defence, or 1.37 per cent of GDP. That's more than twice what it spent in 2014, when the two per cent target was first set; that year, Canada spent $20.1 billion, or 1.01 per cent of GDP, on defence. In 2014, only three NATO members achieved the two per cent target — the U.S., the U.K., and Greece. In 2025, all members are expected to hit it. Any agreement to adopt a new spending benchmark must be ratified by all 32 NATO member states. Former Canadian ambassador to NATO Kerry Buck told The Canadian Press the condensed agenda is likely meant to 'avoid public rifts among allies,' describing Trump as an 'uncertainty engine.' 'The national security environment has really, really shifted,' Buck said, adding allies next door to Russia face the greatest threats. 'There is a high risk that the U.S. would undercut NATO at a time where all allies are increasingly vulnerable.' Trump has suggested the U.S. might abandon its mutual defence commitment to the alliance if member countries don't ramp up defence spending. 'Whatever we can do to get through this NATO summit with few public rifts between the U.S. and other allies on anything, and satisfy a very long-standing U.S. demand to rebalance defence spending, that will be good for Canada because NATO's good for Canada,' Buck said. Carney has already made two trips to Europe this year — the first to London and Paris to meet with European allies and the second to Rome to attend the inaugural mass of Pope Leo XIV. This report by The Canadian Press was first published June 22, 2025.

Politico

4 hours ago

• Politico

The winners and losers in Trump's NATO arms race

NATO members are rushing to show President Donald Trump they're shoveling money into defense — some with a dose of creative math — as Russia's battle with Ukraine grinds on and war threatens to consume the Middle East. The group's summit this week in The Hague, which Trump plans to attend, will attempt to set a deadline for members to spend 5 percent of GDP on defense. Trump has complained about European defense budgets since his first term, claiming the U.S. gets ripped off by countries that rely on Washington for a security blanket. The way allies approach this at the summit is critical. Leaders will need to walk a tightrope between staying on the president's good side — and continuing to benefit from America's role in NATO — and declaring more independence from Washington. As Trump increases pressure, members are touting new investments and shuffling around money — from a 'defense-adjacent' Sicilian bridge to a stopgap German fund. A POLITICO analysis reveals telling gaps between the big spenders in Eastern Europe and those further afield from Russia, who are still creeping toward a decade-old target. The 32 member states break down into three groups: the winners, the risers and the laggards. Most countries occupy a crowded middle ground, not quite racing toward the new 5 percent goal, but making solid progress in exceeding the current 2 percent mark. 'Most of NATO recognizes that it has to be better,' said a U.S. Defense Department official, who like others, was granted anonymity to discuss internal conversations. 'We're looking at these meetings as a very public chance, with the president watching, for them to step up.' Here's how NATO members are faring in the race to spend. Poland has led the pack for the last several years, spending 4.7 percent of its GDP on defense as it splurges on everything from drones to fighter planes. The country, which borders Russia and has dealt with errant missiles killing citizens, is keenly aware of the threat from its eastern flank. That kind of wake-up call has spurred Warsaw to ask the European Commission to shift $6.9 billion of its funding in green projects to defense. The bigger spending has made Poland a favorite in Washington. The Poles are getting creative in their weapons purchases by mixing systems and suppliers from multiple countries to get equipment delivered faster. Poland was the first NATO member to spend billions on South Korean long-range artillery and other systems — a move that other countries frustrated with delayed shipments of U.S. weapons, such as Finland, are emulating. Countries will do 'whatever works' to get to 5 percent, said a diplomat from a NATO member country, including folding infrastructure upgrades into defense spending to push the overall number higher. Estonia, Lithuania and Latvia — former Russian territories that tend to march in lockstep when it comes to defense spending — have outlined plans to hit 5 percent by next year or soon after. They're already among the alliance's top spenders. Baltic officials are embracing a 'porcupine' strategy, modeled off Taiwan's efforts to ward off a Chinese invasion. This involves using small, mobile and lethal weapons fired from shore at any Russian Baltic Sea fleet ships that might threaten them. Greece is a surprise spender on defense, bucking the trend of most Mediterranean countries by dishing out more than 3 percent of its GDP. Prime Minister Kyriakos Mitsotakis in April announced a 12-year, $28 billion defense strategy that will focus on uncrewed vehicles, munitions, drones, satellites and its Achilles' Shield air defense system. The U.S. spends more than any other member on defense, but it still only reaches 3.4 percent of GDP. The country faces its own political challenges in reaching the NATO goal, even with a potential 2035 deadline that allies may recommend at the summit. The United Kingdom and France, Europe's two nuclear states, have made steady increases in recent years but face issues behind the scenes. Britain's defense budget rose from 2.2 percent of GDP in 2023 to 2.3 percent in 2024, with a sharp increase in research and development spending. It also paid extra for major operations such as air defense in the Red Sea and aircraft carriers deployed to the Pacific. Prime Minister Keir Starmer has promised to take that figure to 2.6 percent by 2026 — thanks in part to folding in intelligence and slashing spending on foreign aid. But he's beset by severe budget issues and has not yet set out a path to his goal of hitting even 3 percent. Paris has steadily increased defense spending since President Emmanuel Macron came to power in 2017. But it only hit 2 percent last year. France is one of the European Union's most indebted countries, and public finances are dire. It's unclear how the government would find extra money to reach the 5 percent goal, especially as Macron has ruled out raising taxes. Germany and Sweden have both rewritten their debt rules as they reach 2 percent and aim higher. German governments saw the NATO target as non-binding for years, and only the advent of war in Europe — dubbed the Zeitenwende, or turning point, by former German Chancellor Olaf Scholz — prompted the country to change course. Berlin in 2024 reported 2.1 percent of GDP on defense spending, exceeding the alliance benchmark for the first time since 1990. But the increase doesn't boost combat strength and relies on some fancy accounting. A sizable chunk of the 2024 defense budget came from a special temporary spending fund. Sweden's defense spending surged following its 2024 accession to NATO from 1.5 percent to 2.2 percent of GDP last year. Stockholm is tweaking its debt rules to allow for up to about $30 million in defense loans by 2035. Then there's Turkey. While Ankara has missed the 2 percent mark in recent years, it has a well-developed arms industry and punches above its spending weight in weapons and the size of its military — the second-largest in NATO. Several strategically vital countries hang well below the 5 percent goal, particularly Canada, Spain and Italy. All three have made pledges to catch up. But politics, accounting tricks and historical habits are slowing progress. Canada spends just 1.37 percent of GDP on defense, with key equipment gaps across its forces. Prime Minister Mark Carney this month promised to hit 2 percent 'this fiscal year,' bringing forward a target initially set up for 2029. The lag has deep roots. Ottawa has long relied on U.S. defense guarantees while prioritizing social spending and climate goals. Carney is framing rearmament as a sovereignty issue in light of Trump's threats to annex Canada, but that would require a rapid ramp-up in procurement and industrial capacity. Spain remains NATO's lowest spender, aside from Iceland, which has no army. Madrid spent 1.3 percent of GDP on defense in 2024. Prime Minister Pedro Sánchez has rolled out an €11 billion military upgrade plan to reach 2 percent this year. It's the country's most ambitious defense posture in decades. But Sánchez is boxed in by his governing coalition. Left-wing allies remain opposed to higher military budgets, and previous attempts to raise spending triggered a backlash. He asked Rutte this month, in a letter obtained by POLITICO, for a carveout to the new spending target. 'It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices,' he wrote, saying it would jeopardize the country's welfare system. Italy was only slightly higher at 1.5 percent last year. Prime Minister Giorgia Meloni said the government will hit the 2 percent target this year, but officials suggest that may happen more through clever accounting. Rome wants civilian infrastructure, such as a planned bridge to Sicily, to count as a defense-adjacent goal. Defense spending remains a politically fraught topic as the country faces high debt levels and strong pressure to protect pensions and welfare. This text is a collaboration of the Axel Springer Global Reporters Network. Paul McLeary reported from Washington, Chris Lunday reported from Berlin and Esther Webber reported from London. Jacopo Barigazzi in Brussels, Mike Blanchfield in Ottawa, Jack Detsch in Washington, WELT's Philipp Fritz in Warsaw, Max Griera in Brussels, WELT's Thorsten Jugholt in Berlin and Laura Kayali in Paris contributed to this report.

Business Insider

7 hours ago

• Business Insider

'We're not trying to be Silicon Valley': Inside Station F, where Paris is incubating the next tech and AI juggernauts

In Paris's balmy thirteenth district, an airy rail depot that's been converted into a startup incubator is now the epicenter of France's tech boom. Walking through Station F, it's hard not to see how the 366,000-square-foot space has been influenced by Silicon Valley, with its amenities like a huge cafeteria and an under-construction yoga studio that are reminiscent of Big Tech campuses. But Station F's director, Roxanne Varza, told Business Insider that it is not trying to become an American incubator. "We've been inspired by a lot of players, and we look up to Y Combinator. But we're not trying to be Silicon Valley," she said. Now, politics is helping drive international founders here, including Americans, Varza told BI during a recent visit. Trump 2.0 is driving talent migration The election of Donald Trump and Brexit were among the biggest catalysts driving international founders to Station F, Varza told BI. After France, the US and UK are the most represented nationalities on campus, which houses entrepreneurs from 70 nationalities, Varza said. At times of political volatility, the campus has been a magnet for founders seeking a global outlook and a supply of talent. Trump 2.0 — and its aftermath, including the announcement of Stargate and DeepSeek — galvanized European founders to step up, Varza said. The US tech ecosystem secured $209 billion in VC funding in 2024, about 17 times more than France. But Paris is catching up to its global counterparts. In 2025, technology research platform Dealroom billed the city as Europe's new tech champion, overtaking London's mantle. From 2017 to 2024, the combined enterprise value of startups based in Paris increased 5.3 times, more than any other European tech hub. Climate tech founders in particular have been coming from the US to Station F amid the Trump administration cutting incentives for green industries in the US, Varza said. Materials discovery startup Entalpic, which launched in 2024, has had a flurry of US applicants vying for jobs at the company since the start of the year, its cofounder, Alexandre Duval, told BI. Duval had planned to move his startup out of Station F once it reached 20 employees, but decided to stay. "We have so many resources here: meeting rooms, onboarding, events, opportunities to meet people. It's good," he said. Competitive equity Station F, the handiwork of French billionaire Xavier Neil, launched in 2017 to drive entrepreneurship in France's tech ecosystem. The Station F team accepts around 40 startups every month. In addition to access to the incubator's coworking space, startups get resources and mentorship, including from government officials and Big Tech companies, such as Meta and Microsoft, that have offices at Station F. Station F's flagship Founders Program offers founders workshops and masterclasses. In return, the incubator takes 1% equity — a more favourable figure than the 6% taken by Y Combinator. The incubator also aims to write checks of $50,000 to $100,000 to around 20 upstarts each year. The result is a hubbub of innovators collaborating and ideating all days of the week — a far cry from how some corners of LinkedIn see Europe's tech ecosystem as the butt of the joke for its supposed lax work culture compared to Silicon Valley. Station F has welcomed everyone from the prime minister of Ethiopia to the CEO of Cisco — and the morning I arrive, the CEO of GitHub is scheduled to speak for a Q&A as part of VivaTech, France's flagship tech event that attracted speakers such as Nvidia's Jensen Huang. "The No. 1 reason people come here is for the access to people," Varza added. A hotbed for AI startups Like many of its international counterparts, Station F has doubled down on the AI boom. Government initiatives under France's president Emmanuel Macron, as well as generous financing from the country's national bank, Bpifrance, have galvanized the region's AI startups. In 2023, French AI startups raised $1.9 billion, per PitchBook data. In 2024, this figure rose by more than 50% to $2.98 billion. Notable rounds included Mistral's $600 million raise in June 2024 and H's mammoth $220 million seed round in May 2024. So far this year, French AI companies have raised $1.7 billion in VC funding, and Macron announced in February an additional $112 billion in private sector funding earmarked for the country's AI ecosystem. High-profile investors such as Andreessen Horowitz, General Catalyst, and Lightspeed Ventures have flocked to back prolific AI startups founded in France, such as Mistral, Dust, and Poolside. Open-source AI company Hugging Face, now valued at $4.5 billion, was once incubated in Station F. Now, Varza said, around 40% of France's AI startups are spinning out of the program. In 2024, 34 out of 40 of the top startups touted by Station F — its " Future 40" — were AI companies. "Station F is one of the biggest AI communities in Europe," Varza says. "It's also an entry point for so many tier one investors coming to Europe — and we're seeing more Series A and B rounds too." Beyond helping AI startups raise financing, Station F also participates in regulatory debates about France's tech ecosystem, Varza added. "Right now, the government is talking about how we can fiscally incentivise AI companies and push creation. We're in those discussions very actively." A collegial culture I was keen to speak to AI and climate founders, and within two minutes, Varza had grabbed two people for me to speak to. It was a reflection of how Station F operates: touting collaboration over competition. Despite the vast space, I saw founders from different startups huddled together in various pockets of the station, congregating for in-house events such as Q&As, as well as the bustling restaurant space. "We saw incredible things happen when people were working in close spaces," Varza said. "You see everything from VR and AI companies collaborating — and even companies winding down and neighbouring teams acquiring them." She recalled how one startup in the incubator wanted to pivot and copied a neighbouring company's idea. "It's our only copycat story, but they both ended up being pretty successful," she added. Station F is working on initiatives with Japan and the Gulf region, Varza said — but what excites her most is the opportunity to take what they've built in Paris and "build those bridges" internationally across Europe.