European Union officials are voicing optimism about a possible trade deal with the United States, aiming for 15 percent across-the-board tariffs, including on cars and car parts, but they have also made clear that they are prepared to strike back should an agreement fall through, the New York Times reported. On Thursday, nearly every European Union country voted to back a plan to retaliate against President Trump’s tariffs, setting the stage to hit more than 93 billion euros’ worth of U.S.

Russia’s central bank lowered its key interest rate for a second straight meeting amid mounting signs of a sharp slowdown in economic activity following two years of rapid expansion driven by government spending on the war in Ukraine, the Wall Street Journal reported. The Bank of Russia cut its key rate to 18% from 20% on Friday, having lowered borrowing costs in early June for the first time since 2022. That was in line with investor expectations.

Donald Trump’s tariffs have dealt a €1.3bn (£1.1bn) blow to Volkswagen after the German car giant’s portfolio of luxury brands suffered a drop in sales, the Telegraph reported. Marques such as Porsche and Bentley have been hit by the US president’s sanctions on foreign vehicles, which impose a 27.5pc tax on cars imported from Europe. Britain has struck a deal with Mr Trump to reduce the tariff to 10pc, but the larger penalty remains in place for the European Union, which is still locked in talks with the White House.

Pepco Group's German unit has filed for insolvency proceedings as it seeks to revamp its loss-making store network in the country, Reuters reported. Pepco Germany filed for the proceedings at a Berlin court. The unit operates 64 stores and employs around 500 people. All stores will remain open until further notice. Read more.

The Frankfurt-based European Central Bank kept the deposit facility rate, the main interest rate influencing monetary policy, at 2% on Thursday, which is the lowest level in more than two years, EuroNews reported. As the economy is performing relatively well and the US trade talks are still underway, analysts were expecting no rush from the European Central Bank (ECB) to lower the benchmark interest rate. The ECB sets the monetary policy for the eurozone, mainly through three interest rates.

Euro zone business activity accelerated faster than forecast this month, supported by a solid improvement in the bloc's dominant services industry and with manufacturing showing further signs of recovery, a survey showed on Thursday, Reuters reported. HCOB's preliminary composite euro zone Purchasing Managers' Index, compiled by S&P Global and seen as a good guide to growth, rose to an 11-month high of 51.0 points from 50.6 in June. For the first time in over a year, overall demand did not decline, though there was no expansion.

Hungary's populist prime minister has spent years building a close political relationship with U.S. President Donald Trump and aligning himself with the MAGA movement, the Associated Press reported. But despite Viktor Orbán's success in gaining favor with the culturally conservative and nationalist wing of Trump's administration, his country is poised to be among those hard hit by Trump's tariffs against the European Union. Trump earlier this month announced he would levy tariffs of 30% against Mexico and the EU beginning Aug.

Corporate liquidations and receiverships in Scotland during the first quarter increased by 17.3% year-on-year, to a total of 332, Insider.co.uk reported. The new figures from Scotland's insolvency service Accountant in Bankruptcy also showed that this first quarter figure was up by 12.9%, compared with the previous quarter’s total of 294.