European Firms Navigate Tariffs Better Than Anticipated

Good morning. European firms are weathering US tariffs better than expected. Global equities extend their winning run. And UK bonds post their best performance in almost two years. Listen to the day’s top stories.

European companies’ results show they’re navigating US tariffs a lot better than anticipated. A Goldman basket of European stocks most exposed to tariffs, including firms like BMW and Adidas, rallied about 6% as the earnings season unfolds, twice the gains of the Stoxx Europe 600 and three times those of domestically tilted equities.

US and European stock futures rose along with Asian shares, suggesting a months-long rally in global equities has room to run. Oil gained after OPEC+ said it planned to pause output increases in the first quarter of next year. Gold steadied following a dip below $4,000 after China ended a long-standing tax rebate for some retailers.

UK bonds posted their best performance in almost two years, and investors including Aberdeen and JPMorgan Asset Management are betting on more gains. If a small—but growing—band of strategists are correct that central bank officials will deliver a surprise interest-rate cut this week, the rebound that’s put gilts at the front of a global rally may pick up pace.

Gilts Complete Best Month Since 2023

Move comes ahead of BOE decision and government budget

Donald Trump threatened possible US military action against Islamist militants in Nigeria if the country’s government doesn’t halt the groups’ “killing of Christians.” President Bola Ahmed Tinubu rejected Trump’s characterization of the country as religiously intolerant

France’s government will begin closed-door talks with lawmakers this week in a bid to salvage a budget from a bitter, slow-moving parliamentary debate that risks toppling Prime Minister Sebastien Lecornu.

Check out our Markets Today live blog for all the latest news and analysis relevant to UK assets.

More Top Stories

• Ryanair Lifts Passenger Traffic Goal as Boeing Handovers Improve

• China’s Massive African Mine Threatens to Upend Iron Ore Market

• Buffett’s Berkshire Cash Hits $382 Billion, Earnings Soar

Deep Dive: Big Fight

A Chicago-area toymaker is among the businesses arguing to US justices this week that most of Trump’s tariffs should be struck down.

• The suit now before the Supreme Court is one of the most economically important clashes in the country's recent history.
• A ruling against Trump would undercut his ability to use tariffs as an all-purpose tool to wring concessions out of trading partners and could mean refunds exceeding $100 billion.

Trump's Tariff Revenue at Risk in Supreme Court Case

Court may toss fentanyl, reciprocal, and other IEEPA tariffs

The Big Take

Treasuries Rally Is Proving Trump’s ‘Sell America’ Critics Wrong

Despite the drumbeat of worries—from looming deficits to attacks on the Fed—US government debt secures its reign as the world’s most trusted asset. Read the Story

Opinion

Recent dealmaking by OpenAI appears to raise an awkward question for M&A advisers: What value do you add? As long as the clients are human, there’ll be a need for human advisers at the very top end of dealmaking, Chris Hughes writes. If anything, there’s an increasing premium on judgment.

More Opinions

• An AI-ncredible All-Clear Signal to Rally Markets

• Britain’s Political System Is Undergoing a Risky Revolution

• Gold Bugs’ Bankers Take a Step Back in Time

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Before You Go

An exit charge for wealthy Britons leaving the country and increased levies on expensive homes are on a list of possible tax increases being considered by Rachel Reeves ahead of the UK budget. Treasury officials have drawn up options for dozens of possible hikes to help the chancellor fill a fiscal hole of as much as £35 billion on Nov. 26, only some of which she will eventually proceed with, people familiar said.

One More

How an Accused Kingpin Built an Empire From Cambodia to London

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