White House Peace Initiative
On August 18, 2025, U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelensky, alongside numerous European leaders, at the White House to advance a peace initiative for Ukraine. Trump emphasized that European nations would serve as Ukraine’s “first line of defense,” with U.S. involvement coordinated in the background. Key Takeaways were:
- European-lead security guarantees with U.S. coordination
- Trilateral summit planned by end of August, probably in Geneva (Switzerland)
- Zelensky pledged that Ukraine would buy approximately $90 billion worth of arms from the United States
- High-ranking European leaders –including von der Leyen (EU Commission), Rutte (NATO), Meloni (Italy), Starmer (UK) and Merz (Germany) participated to the meeting
Are BTPs the new Bunds?
As of mid‑August, the yield spread between Italy’s and France’s 10-year government bonds has narrowed to under 10 basis points—the smallest gap observed in the last 20 years. This dramatic compression reflects improved market confidence in Italy’s fiscal health and political stability, alongside renewed concerns about France’s growing fiscal deficit.
- Italy’s 10‑year borrowing cost is now just under 10 basis points above France’s—the narrowest differential since 2005
- Just three years ago, Italy faced a wide gap of nearly 200 basis points over France, underscoring a remarkable improvement in perceived credit risk
- The narrowing yield spread signals a blurring of the traditional “risky periphery” vs. “safe core” narrative in Europe
SoftBank Rescues Intel
Japanese tech conglomerate SoftBank has agreed to invest $2 billion in Intel, representing approximately 2% ownership in the U.S. chipmaker. This move signals a strong vote of confidence in Intel’s pivotal role in U.S. semiconductor manufacturing. At the same time, the U.S. government is exploring converting Chips Act subsidies into equity stakes, indicating growing political interest.
- Boost to U.S. chip manufacturing ambitions – The deal underscores SoftBank’s commitment to reinforcing domestic semiconductor supply chains and tech leadership
- Facing structural challenges – Intel continues to grapple with financial setbacks, fierce competition and a lack of external customers for its foundry business
- Broader political dimension – The U.S. government is considering converting Chips Act grants into an ownership stake to safeguard taxpayer interests and strengthen strategic manufacturing capacity
Global Green Investing on the Rise
Global sustainable investing is entering a new phase in 2025. Capital flows into clean technologies and climate-aligned finance are accelerating, while financial hubs and corporations reposition themselves at the center of the transition.
- Clean energy dominates global capital flows – Investments in renewables and nuclear are set to hit $2.2 trillion in 2025, double the levels of fossil fuel financing
- Financial hubs race for green leadership – London, Abu Dhabi, and Singapore are positioning themselves as global centers for green bonds and regulation
- Corporate climate presence as strategy – For big global companies, participation in COP30 is no longer optional: it is key to credibility, influence, and long-term value creation
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