Free Entrance

On April 30, Donald Trump will celebrate his 100th day in the White House. The first assessments are starting to come out, and there’s a lot of talk about the number of Executive Orders he has signed — currently sitting at 137 — and that’s clearly better than his predecessors. However, what really matters to us as investors is that the President has created an unprecedented mess in the global stock markets. Things seem to be settling a bit in the last few days, and the rebound is, for now, SPECTACULAR. But confidence has been replaced by doubt, and we’re still walking on eggshells. Even if markets are regaining some color, caution is still the order of the day. Surgical precisionIt’s never easy to know “why the market goes up or why the market goes down.” Sometimes it’s due to minor things, sometimes it’s very clear and obvious — but right now, since nothing has been the same since January 26, it’s a mix of many factors that drive the extremely violent movements of global markets, especially the U.S. ones. And yet, amid the avalanche of news flooding us daily for the past three months, there is one common denominator: Donald Trump.Donald Trump, who could also be described as a “multiplier of volatility,” or a “stress emancipator,” or even a “mass producer of tariffs.” But we wouldn’t be fully accurate in our analysis if we didn’t also acknowledge Trump’s HUGE contribution to green energy — since by flipping his position every 24 hours, he’s generating enough electricity to power Washington for the next 12 years. Yesterday again, it was nearly impossible to find a SINGLE news story where Trump’s “brand” wasn’t stamped in capital letters.Sure, one of the main reasons for the recent rally is still the Champions League-level backpedaling on Chinese tariffs and the whole Jerome Powell situation, but beyond that, it seems like every company releasing earnings right now is mentioning the issue of tariffs — both in their current results and in their hesitant forecasts for the months to come. So let’s try to unpack yesterday’s session. I say “try,” because right now it feels like unless I keep it simple and go straight to the point, we’re going to need 18 pages and a one-hour podcast to cover it all.So let’s start from the beginning. The guy says “let’s start from the beginning” after a whole page of verbal diatribe about Trump. We’re not out of the woods yet. Markets are happy, and so are the Americans (well, maybe)First, the numbers. Yesterday, European markets were pleased by Powell’s comeback and the “easing” announced by Scott Bessent regarding China — not to mention Trump’s comments saying they were going to “be nice” to the Chinese.If we dig a little deeper, some economists are starting to say that in this trade war, the Americans actually have more to lose. It’s not by much — maybe two cargo ships of soybeans and a load of semiconductors — but still.Yesterday, Europeans were relieved and could FINALLY focus on their quarterly earnings. In the “quarterly results buffet” category, Dassault Systèmes kicked things off in depressed mode: net profit down 8.8%, 2025 margin revised downward, and BAM! -5%.Thales followed with weak order intake, resulting in a 4% drop after flirting with -5% at the open — surprising, as it was one of the darlings of European rearmament, now seemingly fizzling out.Kering continues to slide, with sales plummeting 14% and the tone becoming as upbeat as a rainy November day in Brest. We talked about it yesterday.Worldline got a real smackdown: -11.43% after losing a major contract and reporting gloomy revenue figures.Luckily, Renault came to the rescue with a +4.4% boost thanks to strong EV sales — I almost bought an electric Alpine yesterday.And Orange did its job quietly with international growth and a gentle +0.36%. In Switzerland, there was joy over Roche’s results, cautious optimism at Nestlé, solid happiness at Kühne + Nagel, and a boom for Belimo and Galderma.Vontobel posted a positive performance for Q1 despite political uncertainty and rising volatility. Assets under management increased, but the stock wasn’t rewarded — it dropped 3.3%. At the end of this crazy day where the word “uncertainty” was used an incalculable number of times (thank you Mr. Trump), the DAX was up 0.47%, France advanced 0.27%, and our good old Swiss SMI gained almost 1%, nearing the 12,000 mark.But you could still feel a sort of uneasy sensation in the European markets — that stomach-churning feeling. Not the one you get after eating six dozen bad oysters that hitchhiked from Arcachon, no! More like the one where, deep down, you just know that as soon as you turn your back, Donald Trump is going to mess things up again. But no!Well, for once, we were wrong.Europe ended slightly higher, wondering whether the China/Powell dynamic would be enough to keep the U.S. afloat through the close and whether Trump would unleash one of his trademark statements. And he didn’t. Or rather, he did — but not in the way we feared. Basically, just minutes after the European close, the S&P 500 started rising a little faster, despite a complete lack of news.Absolutely nothing was happening.Everyone was watching the S&P rise and thinking, “Hmm, why is this going up???”And then suddenly, Trump announced that “discussions had begun with the Chinese.”After weeks of mutual attacks via random percentages, the two giants finally agreed to talk it out in front of a therapist.The indices skyrocketed, ending the day with a bang, and the Philadelphia Semiconductor Index went nuts, soaring 5.63%.It has rebounded 24% from its lows but still needs to climb another 40% to reach all-time highs. That’s how badly it got battered these past eight months.But now, if “talks begin” and they all end up being best friends forever, it’s going to be a party. But the story doesn’t stop at the close — that would be way too simple — no, because we love

ETFs Reshape Investor Criteria

  Active ETFs are redefining asset management by combining the benefits of ETFs with a more dynamic investment approach. However, the diversity of strategies available requires investors to refine their selection criteria in order to fully capitalize on these innovative tools. Transparency, Flexibility, and Low Cost The trend has accelerated over the past two years, but Europe still lags far behind the levels seen in the United States. Across the Atlantic, these instruments captured 30% of all ETF flows last year. The U.S. market has historically led the ETF space, aided by a favorable tax framework and the conversion of many traditional mutual funds into active ETFs. While these mechanisms don’t apply in Europe, active ETFs still offer significant advantages—starting with their low cost. This reputation stems from passive investing, but investors are now demanding similar cost-efficiency in active approaches. As a result, the average management fees in the European active ETF space have steadily declined over the past decade, now falling below 30 basis points (0.30%) per year.“This is very positive for investors because our research shows a strong link between current fees and future performance,” notes Mara Dobrescu. Active ETFs also offer great transparency, with daily portfolio disclosures allowing investors to see the manager’s bets to outperform a benchmark index. Finally, being traded on stock exchanges, they are highly flexible and accessible. However, they face challenges related to capacity and liquidity. Since inflows can’t be capped, active ETFs are less suitable for niche strategies such as small caps or certain segments of the high-yield market. The Quest for Controlled Alpha For investors, many questions remain about how to select these instruments and how to integrate them into portfolios.“We emphasize the importance of due diligence for ETFs, whether active or passive,” says Sophie Bigeard, multi-asset head at Quaero Capital and president of the French Fund Selectors’ Society. “It’s crucial to know what you’re buying when investing in an ETF—whether it’s about liquidity, bid/ask spreads, jurisdiction, or the listing venue.” The main difficulty in selecting active ETFs is the wide variety of products available, ranging from tilted index management to fundamental active strategies. Currently, the market is mostly composed of the former. These can be used in a portfolio as a form of beta exposure, but with a more controlled alpha objective compared to traditional actively managed funds. That is the core challenge for these products. Selection criteria are therefore quite similar to those used for actively managed funds.“It involves validating a portfolio construction, allocation, and arbitrage process,” adds Sophie Bigeard. “On top of that, we pay particular attention to liquidity considerations.” Research at the Core For an active asset manager like Fidelity, the ETF approach involves offering differentiated solutions. Fidelity Investments has been in the U.S. ETF market since 2003, and Fidelity International has been active in Europe since 2017, now managing $9 billion across about 20 products. The first step was launching a range of optimized index ETFs, passively managed but based on proprietary indices developed by their U.S.-based research teams. In 2020, aiming for continuous innovation, they introduced a second range of active ETFs incorporating systematic active management. “With these two ranges, we aim to leverage our strengths and active DNA, which is why research is at the heart of constructing all these ETFs. They also incorporate sustainability considerations,” says Roxane Philibert, ETF product specialist at Fidelity International. The first approach (optimized index) includes two series: Quality Value Equity and Quality Income Equity.“Smart beta isn’t new in the market, but thanks to our quantitative teams at Fidelity Investments, we provide more refined and sophisticated solutions,” says Roxane Philibert. The focus is on quality, whereas value and income factors can naturally degrade portfolio quality. Another differentiating factor is Fidelity’s factor expertise.“We have no less than 90 proprietary factor indices built with our own definitions,” she adds. This allows for a more nuanced factor approach. For instance, in the value factor, traditional metrics (like price-to-earnings or price-to-book) are adjusted to include intangible elements such as R&D expenditures. Moreover, portfolios are constructed to maintain a core allocation, thus limiting sector or geographic skews that certain factors might cause. Top Ratings in the Portfolio The second approach (active ETFs) aims to generate alpha while maximizing the ESG profile of the portfolio and minimizing risk. These three objectives are central to product design across both equities and fixed income. The equity range (Equity Research Enhanced), consisting of six regional building blocks for global allocation, represents $3.7 billion. It is driven by research from over 130 analysts worldwide. Through systematic management, these ETFs maximize exposure to highly rated companies while maintaining an ex-ante tracking error below 2%. The investment universe is first screened for ESG and liquidity criteria. Then companies are assessed based on analyst ratings, data freshness, trend, and analyst conviction—both financial and non-financial. “All these signals allow us to build an ‘alpha score’ with a numerical value,” explains Roxane Philibert. “The optimization process then seeks to maximize exposure to this score while minimizing risk relative to the benchmark.” To achieve this, several constraints are applied: over- or underweighting cannot exceed 1% per stock and 2% per sector or country, ensuring the portfolio remains aligned with the benchmark. The objectives are similar on the fixed income side, which now totals nearly $3 billion. This range is AMF Category 1 and SFDR 9, allowing investors to integrate ESG criteria in a controlled way. These ETFs use stratified sampling, a method traditionally used in ETFs to reduce the number of holdings. “With this approach, we aim to generate alpha by selecting the best issuers and bonds,” says Roxane Philibert. This marketing document is intended exclusively for investment professionals and must not be distributed to retail investors. Investors should note that the views expressed may no longer be current and may have already been acted upon. Past performance is not a reliable indicator of future performance. The value of investments and the income from them may rise or fall, and investors may not recover

Bipolar Markets

It seems things are pretty clear. Since Trump arrived, the markets have become completely unmanageable. Between uncertainty, the implementation of tariffs, and flip-flopping on tariffs in all directions. So much so that no one is really clear anymore on who’s paying what, for how long, and until when. Since the end of January, it’s been total chaos, and we’ve been victims of completely ridiculous volatility while being forced to invest blindly. But what we’ve been experiencing for the past two weeks — now that’s hitting a level of absurdity rarely seen in the markets. It’s not even about volatility anymore — the markets have become erratic… HighlightsIf you want a very quick summary of what happened yesterday and where we are this morning, I’d be inclined to tell you that you could take word for word what we said yesterday morning — and say THE EXACT OPPOSITE! I must say, it’s really not easy to stay calm and rational in this market environment, which feels like being locked in an insane asylum where everyone is allowed to say anything and everything — and also EVERYTHING AND ITS OPPOSITE! And meanwhile, we’re expected to make investment decisions with all the necessary perspective and analysis AND come up with intelligent things to say… Clearly, this morning we’ve reached levels of “NONSENSE” that don’t mean anything anymore. If we try to put things in context and take a step back — we’ll remember that yesterday morning, at the same time, the markets, the media, the Wall Street strategists, and the visionaries of the finance world were all biting their nails, on the verge of the economic panic that Trump seemed to be dragging us into while spitting in the face of the Chinese and — at the same time — inventing words and insults to explain to Wall Street what he thought of Jerome Powell: basically, he imagined Powell being thrown out of the Fed after being tarred and feathered, while the White House would appoint the most unqualified person possible to lead the Fed — as long as they were obedient and eager to cut rates any which way, but especially very, very fast. Anxiety, flip-flopping, and artistic U-turnsIn this nauseating environment at the start of the day, we couldn’t expect miracles. The U.S. markets had spent Easter Monday deeply in the red — for all the reasons we know, especially because of the trade war with China and because Powell was, according to the White House, a loser — and firing Powell could potentially create a bit of uncertainty in financial markets, and right now, UNCERTAINTY was wearing everyone out. I think at the point we were at yesterday morning, words were becoming hard to find to properly describe the level of UNCERTAINTY we were in. Or “ARE” in — right now I don’t even know how to qualify the mental state of the wonderful world of investing — although at first glance, the word BIPOLAR leaps to mind. Anyway, European markets opened lower while U.S. futures were pointing higher; because you see, after a sharp drop, we can always hope for a rebound. I should note, though, that when Europe opened yesterday morning, China and the U.S. were still throwing dishes at each other and Powell was STILL a loser. Then, as the hours passed and New York’s opening approached, there was talk that “POTENTIALLY” Americans were “a bit” more optimistic than the day before — there was even talk of “optimism around tariff issues,” even though nothing had been officially announced by the White House clowns. On the other hand, we had some quarterly figures that weren’t that bad. L’Oréal, for instance, posted a 3.5% rise with revenue of €11.73 billion and said they outperformed the luxury market. But it was mainly the fact that guidance remained solid and that L’Oréal was doing fairly well in a market context we’ll call “complicated.” InterpretationMaybe when we do the markets’ psychological assessment, we need to realize that from now on, we’ll have to focus on interpreting quarterly reports — since we already know that no company is going to publish euphoric guidance and say: “Oh oh oh, 2025 is going to be so easy that we might double our bonuses from 2024 and pay them in advance, champagne for everyone!!!” No, that’s not going to happen. Quite the opposite. It’ll be XXL victimization mode, with companies whining about how tough things will be and how analysts shouldn’t expect much for 2025 — because maybe they won’t even be able to hold a “Christmas Party” this year and might have to delay it to March 2026… Yes, expect a lot of sob stories in post-earnings calls, all to lower expectations for global companies — because Trump is just too mean. Anyway, L’Oréal did well yesterday, and so did 3M in the U.S. 3M published lousy guidance, but again, everyone’s going to follow the same model — and honestly, I’m not far from thinking that this quarter, ChatGPT will write all the press releases, each one with a whiny tone that’ll make you want to start a GoFundMe campaign for these poor corporations, because Trump is just too mean. All this to say, the more time passed and the more “not-too-bad” earnings reports came out (L’Oréal gained over 6%, and 3M over 8%), the more we regained some appetite for risk and interest in buying stocks — because, as one late-evening market recap put it: “Markets found a glimmer of optimism in the HOPE of tariff relief…” Honestly, I don’t know where they saw that or how they still believe anything coming out of Washington, but it was, in any case, one of the reasons pushing the indexes up at the end of the day. Not to mention that the White House spokesperson doubled down on Powell, backing her dear President who — according to her — was RIGHT to express his OUTRAGE at Powell, who really is a BIG LOSER. I

Digital Currency or Control?

Digital Euro or Control? As the world accelerates toward a cashless future, a deeper conversation is quietly brewing beneath the surface: Are we building systems of convenience or tools of control? From the digital euro to mass surveillance tech and Bitcoin’s uncertain role, the years before, during, and after the COVID-19 pandemic have marked a turning point in the global digital and financial landscape. Before COVID: The Infrastructure Was Already Taking Shape Even before 2020, a shift toward centralized digital infrastructure was in motion: Central banks were researching digital currencies to modernize payment systems. Countries like China had already begun piloting a digital yuan, integrated with surveillance mechanisms. 5G networks were being rolled out, providing the bandwidth needed for real-time data transfer — essential for high-resolution surveillance, smart cities, and mass facial recognition systems. Facial recognition was being deployed in airports, public squares, and even shopping centers in countries like the US, China, and parts of Europe. The pandemic didn’t create these tools — it accelerated their adoption. ​During the COVID-19 pandemic (2020–2021):  Speed and Silence Several countries proceeded with satellite launches, advancing their space programs despite global lockdowns. These activities included both civilian and military satellites, contributing to various applications such as communication, Earth observation, and surveillance.As countries entered lockdown, new technologies were quietly normalized: Surveillance cameras were upgraded or installed in many cities under the banner of “public health and safety.” Contact tracing apps tracked individual movements with Bluetooth, GPS, and QR code systems. 5G-powered smart cameras with facial recognition were deployed to detect mask compliance, quarantine violations, and crowd density. Meanwhile, satellite launches continued uninterrupted. Countries including: These satellites improved global surveillance, geolocation, and digital communication infrastructure — many of which are dual-use for both civilian and defense purposes. Countries that launched satellites during the pandemic include: United States: Continued satellite launches through NASA and private companies like SpaceX, including missions for Earth observation and communication.​ China: Launched satellites such as Xingyun-2 01 and 02 in May 2020 to test space-based Internet of Things (IoT) communications technology.​Testbook Russia: Conducted multiple launches, including deploying 34 OneWeb satellites in March 2020 to expand global internet coverage.​TASS+1Copernical+1 India: Resumed satellite launches after initial pandemic-related delays, focusing on Earth observation and communication satellites.​ France: Launched the CSO-2 military reconnaissance satellite in December 2020 and the Syracuse 4A military communications satellite in October 2021, enhancing national defense capabilities.​France 24+1Copernical+1 European Union: Through the European Space Agency (ESA), launched the Sentinel-6 Michael Freilich satellite in November 2020 as part of the Copernicus program for Earth observation.​Phys.org+2Copernicus+2European Space Agency+2 United Arab Emirates: Launched the Hope Mars Mission in July 2020, marking the Arab world’s first interplanetary mission.​Agenzia Nova Turkey: Launched the Turksat 5A communication satellite in January 2021 to improve national broadcasting and internet services.​Agenzia Nova Saudi Arabia: Announced increased investments in its space program as part of the Vision 2030 reform plan, aiming to develop local satellite production and launch capabilities.​Agenzia Nova ​ Post-COVID: The Rise of the Digital Euro With much of the digital groundwork laid, the European Central Bank (ECB) has been moving forward with its digital euro project: 2020: ECB releases its first comprehensive report on a potential digital euro. 2021: Launch of the investigation phase. 2023: Preparation phase begins — technical planning, legislative drafts, infrastructure. 2025: A final decision on issuing the digital euro is expected. The official goals are: Payment efficiency Financial inclusion Digital sovereignty (less reliance on private tech giants) Future-proofing the eurozone economy But this raises a set of critical questions: Will programmable digital money allow or restrict how you spend? Who decides what transactions are allowed — or blocked? Can your financial access be influenced by behavior, similar to a social credit score? Bitcoin: The Digital Euro’s Opponent or Ally? Unlike the digital euro, Bitcoin was designed as a decentralized, borderless currency, free from control by any government or central bank. Its founding principles: Scarcity (limited supply) Freedom from centralized control Transparency via blockchain This has made Bitcoin a symbol of financial freedom, especially in countries with high inflation or political repression. But central banks and governments are watching closely: Some countries ban or restrict crypto (e.g., China). Regulatory pressure is increasing in the EU, US, and other regions — especially around KYC/AML rules. Institutions are entering the space (BlackRock, Fidelity), blurring the line between decentralization and central control. This prompts a key question: Is Bitcoin a tool for financial freedom — or is it slowly being co-opted? What’s Next: A Future Worth  Are we moving toward a financial system that rewards conformity? Will cash — and financial privacy — eventually disappear? Could a low “social score” mean your payment gets denied? Is Bitcoin the only exit, or will it be brought under control? We live in a world where technology offers both liberation and control. Which direction we take depends not only on policy-makers and corporations — but also on whether we, as citizens, stay informed, ask the right questions, and demand transparency. Happy Easter!  

Tariffs:A Cover for Inflation?

The day that just passed was another “two rooms, two vibes” session. On one side, Europe is hoping that the upcoming rate cut will save their world, so no one wants to sell. On the other side, the US keeps picking fights with everyone—especially China. Semiconductors are getting crushed from all sides, and Powell shows up calmly with his gas can and lighter, doing just what Johnny once sang: “Light the fire.” At the close, the Europeans managed to hold on, but over in New York, fatigue is clearly setting in, and the expression that comes to mind is: “we’re fed up.” Big Fatigue If you started reading or listening to this piece hoping to discover something new or fresh—or better yet, something original and different—let me warn you right now: you’re going to be disappointed! Disappointed, because at this point we’re just reheating yesterday’s leftovers. It’s becoming clear that there’s a full-blown war between China and Donald Trump, and honestly, sometimes you have to wonder how we’ll ever get back to a halfway normal situation. But let’s start from the beginning… While Europe was clinging to the railings trying not to panic—desperately SHOUTING ABOUT THE ECB CUTTING RATES TO DROWN OUT EVERYTHING ELSE—the US session kicked off with a general panic in the semiconductor sector. Nvidia, AMD, and ASML were getting slaughtered for nothing. Or rather, for a lot—because Nvidia lost about $200 billion in market cap in one day. That’s like wiping out UBS and ABB combined. But that’s not even the point. The AI kings got demolished for the same reasons we discussed yesterday morning: AMD and Nvidia can’t sell anything to China that even remotely relates to artificial intelligence. Trump’s comments yesterday didn’t help at all either. Add to that ASML’s earnings report showing slowing sales and a very, very, very cautious outlook for the rest of the year. This morning, we should get Taiwan Semiconductor (TSMC)’s earnings, but I’m not at all sure it’s going to reassure anyone. Because if their guidance is good, it means they’re living in an alternate universe… Bloodbath Day The day started with a bloodbath thanks to the semis. Then we tuned in to White House Radio for the latest, and again: nothing new, but nothing good either. Trump talked about an embargo on chips headed to China—which doesn’t change much for Nvidia and AMD since they’re already banned—but it killed any remaining hope of a deal with the White House. And, as usual, Trump had to one-up himself: he announced a 100% increase in tariffs on Chinese goods. We’re now at 245% import taxes on everything from China. Which makes no sense at all—he might as well have said 1,000% since trade has basically been frozen since the 50% level was reached. Hong Kong Post has even stopped shipping parcels to the US. Total War But never mind the numbers—what really matters is that the US is cranking up the pressure on China from every angle. Team Trump even said they’re negotiating with other countries to prevent China from exporting to them and then re-exporting to the US. Basically, Uncle Donald is doing everything he can to isolate China and block their exports. Over in China, they’re also gearing up for a fight: they’re refusing delivery of their Boeings and demanding “respect” from the US before they’ll even consider negotiating. And right now, you can’t exactly say Trump is showing the slightest atom of respect—to China or to anyone else, for that matter. Even though these tensions aren’t new, the markets are having a hard time putting a positive spin on it—especially since it’s nearly impossible to gauge the long-term impact of these policies. The numbers change every half hour. Even AI is losing its mind. So just to be safe, Wall Street traders removed the “BUY” key from their keyboards yesterday. And as if that weren’t enough chaos, Powell flew to Chicago and decided to stir the pot a bit more. Not that he gave us any clarity or helpful info—in fact, quite the opposite. Powell Spoke To sum up Powell’s speech in one sentence: the Fed needs to be ready to fight a resurgence in inflation caused by the tariffs. Powell believes those tariffs will hit hard—it’s not just a negotiating tactic—and inflation might spike again. On top of that, Powell emphasized how worried he is about slowing growth. COULDN’T ASK FOR BETTER NEWS! The head of the Fed himself talking about weak growth and rising inflation. Thankfully, he didn’t actually say the word stagflation, but we’re all definitely thinking it. Hard. Since 2021, the Fed has been obsessed with inflation. But now, the picture is getting more complicated as slowing growth is added to the mix. Powell hinted that the job market is still okay, but we should stay alert. Economists are already revising growth forecasts downward—but they’re not predicting a full-blown recession just yet. We’re talking slowdown, not crash. Still, the message is clear: risks are rising. And rates? Nothing. Nada. Not even a postcard. Powell played the classic “wait and see” card. He even repeated it with emphasis: “For now, we’re well-positioned to wait until we get more clarity.” The word “wait” was like a mantra. The zen of monetary policy. New York Not Happy So the session ended deep in the red. The Nasdaq dropped another 3%, and the SOX index lost 4.1%. Translation: the markets hated it. As soon as Powell said there was “no urgency” to cut rates, the Dow dropped 2,000 points—as if to really drive the point home. Yet the market prophets are already betting on four rate cuts before the end of 2025. In other words, the market and the Fed aren’t reading from the same script—and they don’t seem to be listening to each other either. Meanwhile, other Fed members are sending mixed signals. Kashkari and Collins said they want hard proof before cutting anything—like, say, a surge in unemployment. Chris Waller is playing the dove,

Good Morning Sir

The further we move forward, the harder it is for me to remember “what it was like when Trump was President the first time.” It seems we were quite attached to his “tweets,” but we weren’t nearly as dependent as we are today. Observing the markets over the past 24 hours, I can only note the drop in volume and the sudden disappearance of that deep interest we once had in the markets. Either people have stepped to the sidelines, waiting for the next tariff-related story, or last week’s frenzy is over and we’re slipping back into our macro routine until the next crisis comes along. Lying in Wait But to be honest, it feels more like we’re lying in wait, ready to either sell and short everything or to buy it all back and make FOMO our motto again. It seems unlikely that Trump will just stop and let time pass — he needs to be in the spotlight, and he desperately needs a concrete result so he can tell the press: “See, I told you so!”Still, yesterday’s session was sad and dreadfully boring, with volumes so low it felt like the weekend had already begun. Then again, technically, tomorrow is Friday since the week ends early in the U.S. But just because it was quiet and Trump didn’t say or do anything major doesn’t mean nothing happened. We still had to deal with the car sector, as the President had shown a desire to ease restrictions there. The sector reacted well, especially in Europe, where most automakers gained 2%, although there was still a sense of caution — investors know Trump can change his mind in a heartbeat.So, the European markets had a fairly positive session, but with pathetic volumes that suggested everyone was on the defensive. In the end, if we remove Trump from the equation, only two topics remained: LVMH’s disappointment, losing its spot as the largest market cap in France, overtaken by Hermès, which apparently isn’t feeling the same industry stress as its rival. Experts explained yesterday that while LVMH is luxury, Hermès is “more luxury than LVMH.” So since Hermès is more exclusive, people with more money haven’t yet cut back on their lifestyle.Bottom line: LVMH fell 7%, and to think that just a year ago people would’ve killed to buy it at €880… It’s yet another reminder of how little we actually understand in finance and in valuing a company. The second issue that rattled European investors was the ECB.To put it simply, while Madame Christine was still considering not cutting rates a few weeks ago — right after the March meeting — yesterday it became clear the ECB will cut rates again this week. The Trump method is weighing too heavily on European growth, which is already teetering on the edge, and the ECB can’t afford not to act — especially since inflationary pressures are no longer a concern. France even reported a CPI drop to 2.2% yesterday.If even Bayrou — with the blood pressure of a sloth — can bring inflation down, anyone can, and inflation clearly isn’t a problem anymore.So yes, the ECB will cut rates, but its messaging will remain “less dovish” while still keeping every option on the table — economic visibility in the Trump era is about as clear as a foggy London morning in October. Trump and the Metals While Europe mourned Bernard Arnault’s decline, welcomed rate cuts, and wondered if Trump could be trusted on the auto front, the U.S. President had already moved on.Since yesterday — and into this morning’s open — his main focus has been tariffs on rare earth metals. Trump just launched a new offensive: an investigation into potential tariffs on all critical minerals imports. The goal? Reduce U.S. dependence on China, which remains the dominant force in strategic metals (rare earths, cobalt, nickel, uranium…). In case you’re wondering: what’s a critical metal? It’s a metal the modern economy can’t live without but that no one really produces domestically.We need them for smartphones, EVs, fighter jets to defend against Putin, and for charging Teslas… but we usually have to get them from someone else — and often, that someone is China. A metal is considered “critical” if it meets two conditions: It’s essential to strategic sectors (defense, energy, electronics, green transition, etc.). It’s high-risk: either because very little is produced, or supply depends on unstable or uncooperative countries (like Russia or China). Washington is finally waking up to the fact that its economy runs on materials it doesn’t control. The causes? Massive industrial lag, fragile supply chains, and just one rare earth mine on U.S. soil. Meanwhile, Beijing controls most of the world’s refining and is already retaliating by restricting exports.America’s realizing — a bit late — that it let vital resources slip away… and now Trump wants to impose tariffs to claw back lost ground. This marks another stage in his war with China. Trump also offered China the chance to “step up” with proposals to resolve the conflict. Suddenly, he seems eager to extend an olive branch — but the problem? Xi doesn’t seem interested… for now.This new move on critical metals did move mining stocks a bit, and they’re still active in Australia this morning. But truthfully, it hasn’t had much impact on the overall market.U.S. indices closed slightly down yesterday, as if we wanted to push higher, but something was holding us back. Fear, most likely — fear of another Trump tariff misstep. Nvidia’s Backlash Right now, nothing moves in the U.S. without being filtered through the lens of potential Trump impact. Want proof? Just look at what happened to semiconductors after the market closed yesterday.NVIDIA announced a $5.5 billion impairment charge. Why?Because they had recently developed chips called H20 — specifically designed to circumvent Biden’s restrictions on China. But now, those chips require an export license… and OF COURSE, Washington has no intention of granting it.Result: unsold inventory, canceled orders, and obsolete stock. China still

Luxury Lives Matter

After the week we just lived through, it’s understandable that we need to take a breather and not get too excited. Yet the problems remain the same, and the doubts regarding tariffs are still ever-present. The temporary gift Trump gave to all electronics and their components was the session’s “driver,” but to be honest, while Europe benefitted, it was less striking in the US. You can tell that no one “really” believes in it, and Apple, which was supposed to be the “big winner” from the weekend’s news, only ended up 2.2% higher after opening with a +7%. No one’s buying into it, and we’re expecting a backlash. Two days in a rowBut hey, we’re not going to complain — it can’t go up 10% every day, and the US indices still posted their second consecutive day of gains. That hadn’t happened in a while. So let’s not get carried away and start saying a trend is forming, but let’s just say that “for now,” it’s A BIT CALMER than what we experienced last week. At the same time, it would’ve been hard to imagine worse — especially on a Monday — but the week’s not over yet, even if it will be shortened by Good Friday. In any case, we’re still living in the same world, and even if there are a few more corporate updates—ones that manage to break through the flood of statements from Trump and his team—the overall obsession remains tariffs. Let’s not kid ourselves. Yesterday, the American President again expressed his intention to find a solution to “relieve” the tariffs imposed on car manufacturers. And even if his objective wasn’t very clear in substance or form, it at least gave some breathing room to companies like GM or Stellantis — even if, again, the new moratorium Trump wants to announce for the sector is very unclear. It feels like we’re so desperate for good news or even just a little clarity in this shitty geopolitical environment (sorry, couldn’t find a synonym) that we’re willing to believe or get excited over anything. The mood was good, but nothing moreTo put it simply, the markets ended higher because of the electronics announcement that came over the weekend, but right after the announcement, Trump and Lutnick were quick to say we shouldn’t celebrate too soon. So the market found it hard to get fully motivated, knowing that a 180-degree reversal could come in the next few days. Hence, the performance was average at best, and overall, lacked enthusiasm. As the title said: it was too quiet. Europeans, on the other hand, were more motivated than the Americans — as if they were enjoying a quiet Monday with no major breaking news to catch up on last week’s performance. So, while we wait for the next batch of announcements from the “Trump Team” — which will surely hit us in the face before the Easter egg hunt — market players are acting “as if” none of it concerns them and, for now, trying to get back to normal life. Focus then shifted to Goldman Sachs’ figures. And yes, I know — we usually don’t care much about bank earnings. Even though they’re kind of the “barometer” for the beginning of earnings season, we generally know they don’t mean much. That’s because, if we’re being honest about analyst expectations, there’s no worse scenario than one banker analyzing another banker’s performance. Usually, they’re off the mark in many sectors, but when it comes to banks, it’s often completely out of touch. It’s like no one’s ever managed to read a bank balance sheet without having a seizure by page eight, and since then, after so many ER visits, the analysts covering the banking sector just throw darts at the wall to set expectations. It’s statistically safer. So Goldman Sachs ? The good news is that the sector’s been so beaten down since people began to realize that Trumponomics would bring back inflation, a recession, locusts, and a zombie apocalypse, that expectations were low. As a result, the queen of investment banks — nicknamed “the vampire squid” for years thanks to a Rolling Stone article — reported numbers well above expectations. Of course, when you expect nothing based on almost nothing, it’s hard to miss the quarter. The “BANK BALANCE SHEET ANALYSIS EXPERTS” were expecting $12.35 per share, and it came out at $14.12. The quarterly profit hit $4.74 billion, well above expectations. Last year, during the same period, profit was $4.13 billion. The bank also announced a share buyback program of up to $40 billion, and during the press conference, the CEO said recession risks are increasing due to tariffs and that the US economy is at risk, but that THEY are confident in themselves. It must be said that trading revenues for the first three months of the year were over $4.2 billion. So when people talk about volatility, at Goldman they say: Long may it last!!! Numbers, numbers and more numbersIt wasn’t just Goldman reporting yesterday – LVMH also had something to say. And the result? Not exactly mind-blowing, although there’s still plenty of hope for the future. Bernard Arnault had a bit of a rough patch in Q1 – but let’s be clear, he can still afford a €100 million townhouse in central Paris (and not in the sticks), with enough cash left to pick up one or two Ektorp sofas from Ikea. Now that we’re all reassured about Bernard’s standard of living, let’s note that sales were down 2%, at €20.3 billion. Nothing dramatic, but the real issue is in the US – a key market for them – AND OBVIOUSLY it’s due to Uncle Donald’s lovely tariffs. The group says it’s staying calm, confident… but also on guard, because the whole thing kind of smells like a highway rest stop toilet in July. CFO Cécile Cabanis is hoping the 90-day truce will allow for some negotiation, but the real message is: “we’re crossing our fingers,

Bluff Street

Just as the week was barely over, we almost immediately got what looked like some good weekend news: the White House announced that smartphones, laptops, integrated circuits, transistors, semiconductor storage devices, and machines used for semiconductor manufacturing would be exempt from certain tariffs. It felt a bit like Tim Cook might’ve made a few calls and started looking into relocating Apple to a slightly more cooperative country. People were already thinking the week would kick off with a bang… but, of course, it’s not that simple. Quite the opposite, in fact. Turn the other cheek The joy was short-lived — because clearly, it’s not that simple, and things actually seem to be getting more complicated (especially in terms of uncertainty — something the market absolutely HATES, as a reminder). Shortly afterward, Commerce Secretary Howard Lutnick clarified that these products would be subject to separate tariffs in the coming months. And President Donald Trump added fuel to the fire on social media, stating that there were no tariff exceptions and that everyone would be hit, plain and simple. If we go by weekend signals, markets should have opened sharply higher — but the closer we get to the open, the less obvious that becomes. At times, it even seems like we might open lower, simply because investors are fed up with being pulled in every direction in a state of total confusion, unable to trust anyone, all amid the most absolute uncertainty. A Complicated Week Before diving into this week’s agenda, there’s no need to revisit last week in detail — but it’s worth reminding that nothing has been resolved, and volatility seems to be settling in for the long haul. Market participants are practically paralyzed by the mere thought of Trump tweeting something new, something that could ONCE AGAIN completely reshape the market landscape. No need to rehash the whole of last week, but since we could barely manage two consecutive sessions moving in the same direction, and almost every day had swings of more than 2% — up or down — there’s not much more to analyze: the market is totally lost, and nobody is able to take a step back and make rational decisions anymore. Let’s be honest: Trump’s management style isn’t exactly easy to handle, and drawing any kind of solid conclusion from it is a fool’s errand — technically, everything changes every 24 hours. With new updates on tariffs followed by sudden 180-degree reversals on announcements made just 72 hours prior, it’s hard to know what the President is running on, but it must be seriously potent stuff. In any case, I’m not risking much by saying that this week is likely to be spectacular again — and that words like confusion, uncertainty, and complete mess will be featured heavily in the media over the next few days. The Return of the FED Yes, uncertainty will be with us once again. Because alongside Trump’s economic and political twists and turns, the market will also face its first week of quarterly earnings reports, some economic figures — which frankly don’t matter much anymore, as we saw with last week’s CPI and PPI data — and, on top of all that, we’ll hear from Jerome Powell. He might either save our skins or drive a stake through our hearts while hurling cloves of garlic to make sure we don’t get back up. Indeed, the Fed Chair’s statements will be watched closely, and the slightest hint that the Fed might align itself with Trump’s desires could give financial analysts plenty more material to work into their forecasts — especially as they try to determine whether the odds of a recession are increasing. As for quarterly results, there’s some heavy-hitters lined up. Goldman Sachs will lead the charge, and things should go well — especially since the sector performed better than expected last Friday. Over the weekend, Goldman even raised its gold target from $3,300 to $3,700, warning that “in case of serious market risk and worry,” gold could even spike to $4,500. The analyst then went on to make the weather forecast for the New York region: possibly rain or snow, unless the wind dies down and the weather shifts north — in which case we might get sunshine with temperatures ranging between -5 and +42 degrees. Anyway… In addition to Goldman Sachs, we’ll get results from Citigroup, Johnson & Johnson, ASML, and TSMC. There will be others, but these ones matter. Market Expectations Looking at current market expectations — which have been revised to rock-bottom levels — it’s likely that downside surprises will be few and far between. But the real risk lies in management comments and future outlooks. Given the current climate, any cautious projection — or worse, any statement suggesting that the rest of the year will be tough “given the current geopolitical and trade environment” — could cost companies an arm and a leg. We’ll talk more about that when the time comes. One thing is certain: this week will begin under the sign of tariffs, just like the past few weeks. One more thing is guaranteed: market stress isn’t going away any time soon. The many erratic and unclear statements from U.S. authorities will continue to destabilize not just the markets, but also investors and consumers. Until things are clearly defined, it will be extremely difficult to find any real stability — and even harder to rebuild trust. Bipolar Reflection But if we were to take a moment and lay things (a bit) flat at the start of the week, it’s worth noting that, according to analysts (who change their minds every three days, let’s remember), what Trump is currently doing could either trigger a minor cramp in American growth… or a full-on cardiac arrest. In the best-case scenario, we’re talking sluggish growth, and in the worst-case, we’ll have to utter the word that must not be spoken: the word RECESSION. The cause of all this stress? Customs tariffs, of course. Import taxes

Namaste Tariffs

Billy Joel once sang: “We didn’t start the fire.” Well, it sure feels like the fire’s been burning since forever, and the market keeps pouring gasoline on it. The day before yesterday, we soared. Yesterday, we dropped. And after bouncing up and down so much, I have to admit: it’s hard to know what to think anymore. Or maybe not. Personally, I think the best thing we could do right now is shut down the markets until he figures out what he wants to do with his tariffs. Once the self-proclaimed President of the World decides who’s going to pay what, we can reopen global markets and start living a normal life again. Because right now, uncertainty is running the show, and frankly, it’s exhausting. While we wait for the big players to decide to close the stock exchanges indefinitely — just long enough to let the rulers of the world play their little economic war games — we spend our days doing the financial hokey-pokey: “up, down, down, up,” all to the rhythm of a dusty old ‘70s tune. And honestly, it’s getting seriously annoying — if not downright unbearable. I’ve kind of lost the beat. Let’s recap:We got crushed on Monday because there were no negotiations over the weekend and Trump said there wouldn’t be a moratorium.Then Tuesday, markets exploded nearly 10% because Trump said there would be a 90-day moratorium.And yesterday, we tanked again because uncertainty came roaring back and, surprise surprise, the US-China trade war is making investors nervous. I’m glad everyone’s finally realizing that the US-China trade war is a problem, but I’m starting to wonder what the point of trading even is anymore. Opinions flip faster than a pancake, and there’s no safety net — especially when the man in charge has the mental stability of an overcaffeinated Labrador chasing a biscuit under the couch. At this point, buying a stock on Monday and hoping to sell it by Friday at a profit is like playing Russian roulette with five bullets in the chamber. One in six chance you survive. These wild swings bring nothing of value to analysis, because what’s the point of thinking strategically when the guy pulling the strings is completely unpredictable? Tariffs on China are at 145%, and it feels like they climb another 20% every day depending on Trump’s mood. Nothing guarantees he’ll stick to that 90-day moratorium — especially since the weekend starts tonight, he’s heading to the golf course, and by Sunday night he’ll probably tweet something ridiculous from Air Force One on his way back from Florida. No FilterBack to reality. I still believe everything should be shut down until the clowns running the world make up their minds. But in the meantime, markets are open — unfortunately — so let’s stay with the facts. After Wednesday’s explosive rally, European markets had no choice but to chase the US gains on Thursday morning. You can re-read every market summary and search for rational explanations behind Thursday’s European rebound, but there’s only one real reason: the stratospheric rise from Wednesday. For now, as long as the Muppet Show in Washington continues, Europe is just following America’s lead, albeit with a bit of a time delay — like watching a rerun in slow motion. If you tuned in to European news channels yesterday, you’ll have noticed nothing else happened apart from Trump’s sudden U-turn on tariffs. We spent the entire day in “special edition mode” trying to figure out why he flipped and whether he manipulated the markets for personal gain. No clear answers emerged, of course, but European indices closed sharply higher. Some politicians even started patting themselves on the back, thinking Trump blinked because he was afraid of Europe. Right. Still No FilterThen the Americans came into the office and started taking profits after the previous day’s euphoric rally. As soon as Europe closed its markets, the sell-off resumed in New York. By the end of the session, the S&P500 had lost 3.5% and the Nasdaq 4.5%. And honestly? Nothing much happened during that session. Well — at least Trump didn’t say anything new. The media took over and started throwing around words like “insider trading” and dissecting the logic (or lack thereof) behind his reversal, just to keep things passionate and semi-rational. But again, the day was violent and volatile. I remember not so long ago, when we proudly counted the number of days the market didn’t move more than 2% in either direction. Days when the only driver of stock prices was: “Well, the Fed’s going to cut rates anyway!” That golden age feels like ancient history. And once again, just as Europe was celebrating gains, the Americans were dragging everything down again — almost as if they were deliberately trying to do the exact opposite. But let’s stay calm. After a 10% rally, a pullback is completely normal. It’s what White House Trade Adviser Peter Navarro said yesterday — that the market decline was nothing special and just a natural profit-taking move. Navarro, by the way, is the guy Elon Musk once called an idiot. Given his track record and deep anti-China stance, I wouldn’t be surprised if he avoids Chinese food altogether. Stats and InflationAnd since we were in “special edition” mode all day, we went digging through old statistics and found out that Wednesday’s surge was only the 10th biggest single-day gain ever. Most of the top gains happened in the 1930s. The all-time record still belongs to March 15, 1933, when the S&P500 jumped 16.61%. We also saw better days during October 2008. Historically, when you get a “meltdown-mania” kind of day like Wednesday, markets tend to lose it all again within 10 days. And for those wondering what triggered the 1933 rally: it was the passage of the Emergency Banking Act, meant to restore faith in the system. Some things never change in the world of high finance. On days like that, everything rises — even junk stocks.

Goldman’s Crystal Ball

I think we’ve just reached a new peak in human stupidity – at least in the financial sector. What President Trump is doing right now is the biggest stock market manipulation in history. Honestly, I’m at a loss for words to describe what we’ve been witnessing in the markets for a few days already, but what happened yesterday goes beyond comprehension and shatters the credibility of global stock exchanges. Once again, after European markets closed, Trump did his little show and “offered” us the biggest surge in 24 years. The only word that comes to mind is: idiotic. Which, by the way, sums up the past 8 weeks pretty well. Not much to say except stating the facts Yesterday’s trading session had two distinct phases: Phase one – depression and a new wave of European panic, where everyone was freaking out over trade war escalation, recession risks, and the idea that under such circumstances, stock markets would never recover and we might be heading into an unprecedented economic nuclear winter. All major European markets ended deep in the red. A 3% drop in Germany, 3.34% in France, 2.75% in Italy, 2.22% in Spain, and 4.15% in Switzerland – which had, until recently, managed to fall less than others. Roche and Novartis down 6%, same for Sanofi, even though the pharma sector is still exempt from tariffs, BUT WE ALLOWED OURSELVES TO THINK that Trump might soon announce specific tariffs on non-American pharmaceutical companies. So, European and Japanese markets spent the whole day catching up on Tuesday’s drop, since let me remind you that on TUESDAY, we had opened higher and stayed higher throughout the session because the Americans had shown the way by anticipating a TARIFF PAUSE. Remember this juicy detail – it’s about to get even better in just half a paragraph! You know the rest: Americans chickened out Tuesday evening when Trump declared there would be no tariff pause, implying that countries had no choice but to crawl at his feet and lick the leather of his loafers if they wanted any kind of deal with the US. So Wednesday morning, Europeans had no choice but to dump everything they had bought back on Tuesday, since tariffs were here to STAY!!! YES, YOU READ THAT RIGHT – yesterday, by the end of the day, while Europeans were heading home after another bloodbath on the markets… morale in the gutter, convinced we’d never get out of this… The atmosphere was grim and heavy. And then Trump showed up (again) While on our side of the Atlantic, depression was deep and worries were at their peak. Everyone trying to imagine an economic future weighed down by crushing tariffs and runaway inflation caused by those same tariffs. Then, Trump showed up. Again. The President of all Americans decided to implement a 90-day moratorium on tariffs. He did this after European markets had already closed in the dumps. Which now gives a wonderful opportunity for European indexes to pedal upstream all throughout the session starting in a few hours. I don’t know if some people closed out yesterday with short positions, thinking the economic nuclear winter would last until Friday, but one thing’s certain – today’s going to be rough for them. Trump’s announcement sparked an INSANE rally: nearly 10% on the S&P500, 12% on the Nasdaq, and almost 8% on the Dow Jones. We hadn’t seen a session like that since 2001. 24 years! It’s been 24 years since the markets blew a fuse like they did last night. It felt like Trump had just announced that tariffs would never return, and that, just maybe, he’d start giving out gifts to countries just for being nice to America, while saying he no longer gave a damn about Making America Great Again – his only goal now being to push the S&P500 to 10,000 before the end of March. I swear, watching the market and the performance of some tech stocks that were up over 20% during the session, I got the impression that tariffs were completely forgotten and that we had to rush back up to where we were on February 19th: at all-time highs. So this morning, I went online and tried to find synonyms for the word “idiotic” to describe the markets in a more creative way, but honestly, I’m out of words… We could say what happened yesterday is completely dumb – that works too. But I was hoping for something more flamboyant. Anyway, no point complaining because things are going up, but what worries me more is the violence of the moves. And above all, the total disconnect between the announcements and market reactions. The further we go, the more explosive the consequences of these announcements become. It’s worth noting that yesterday’s rebound was stronger than the one during COVID when they told us it was open bar, the governments would support us forever, and the money started pouring in the very next day… The facts Anyway: yesterday, US markets exploded and this morning, Europe is set to do the same. But seriously, what did the guy actually say to cause such a stampede? Did he announce that it was all over and that he’d hand out 1 Bitcoin to every American? Did he say he’d been wrong and was now going on a global tour with Air Force One to personally apologize to every world leader? Nope. He just suspended the retaliatory tariffs that had been announced on April 2nd. Which means the original 10% tariffs still remain, but the additional ones are off. For 90 days. And if, during those 90 days, the affected countries don’t come crawling to Washington to negotiate, they’ll get slapped with the full tariffs again. Or worse. And it’s already started. Since the Chinese have shown “disrespect” to the Americans in recent days and have, let’s not forget, RIPPED OFF the US for years, Trump gave them a penalty: while the rest of the world gets a 90-day moratorium,