American fund managers welcome decision to scrap Section 899<\/p>\n
The Investment Company Institute (ICI), which represents fund houses in the U.S. and some in Europe, welcomed the powerful Senate Finance and House Ways and Means\u00a0committees’ decision to remove Section 899 from U.S. President Donald Trump’s spending bill<\/a>.<\/p>\n The ICI previously lobbied Congress against Section 899, warning that the provision impacted most foreign investments in the U.S. stock market, according to documents seen by CNBC<\/a>.<\/p>\n “ICI applauds today’s announcement from Chairman Crapo and Chairman Smith that Section 899 will be removed from the\u00a0One Big Beautiful Bill Act\u00a0following the Administration’s agreement with G7 countries,” the ICI said in a statement.<\/p>\n “We thank Treasury Secretary Scott Bessent, Chairman Crapo, and Chairman Smith for leading the successful negotiations and ensuring the United States continues to be the premier destination for global investors.”<\/p>\n \u2014 Ganesh Rao<\/p>\n JD Sports shares pop 8%<\/p>\n LONDON, UNITED KINGDOM – 2021\/05\/17: A scene outside JD sport shop. (Photo by May James\/SOPA Images\/LightRocket via Getty Images)<\/p>\n Sopa Images | Lightrocket | Getty Images<\/p>\n British sports apparel retailer JD Sports<\/a> is currently topping the Stoxx 600 with a gain of 7.8%.<\/p>\n The stock’s rally comes better-than-expected fourth quarter results<\/a> from sportswear giant Nike. More than 90% of JD Sports’ sales are derived<\/a> from major brands including Nike, Adidas and Puma.<\/p>\n \u2014 Chloe Taylor<\/p>\n U.S. Treasury Secretary Bessent seeks end to \u2018revenge tax\u2019 on foreign investors<\/p>\n US Treasury Secretary Scott Bessent speaks to reporters after meeting with Senate Republicans at the US Capitol in Washington, DC, on June 24, 2025. <\/p>\n Saul Loeb | AFP | Getty Images<\/p>\n In case you missed it, U.S. Treasury Secretary Scott Bessent on Thursday evening said that he had asked the Senate and the House of Representatives to strip a measure aimed at penalizing some foreign investors out of President Donald Trump’s spending bill.<\/p>\n The Section 899 measure \u2014 which became colloquially known as a “revenge tax” \u2014 would have slapped new taxes on investors from certain countries<\/a>, cutting into their returns on U.S. equities and other assets.<\/p>\n Bessent said he asked lawmakers to ditch Section 899 after U.S. officials came to a “joint understanding” with G7 countries on a global tax deal, under which “OECD Pillar 2 taxes will not apply to U.S. companies.”<\/p>\n “Based on this progress and understanding, I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill,” he said in a post<\/a> on the X social media platform. <\/p>\n “This understanding with our G7 partners provides greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond.”<\/p>\n \u2014 Chloe Taylor<\/p>\n Autos stocks rise<\/p>\n A Porsche at the New York International Auto Show on April 16, 2025.<\/p>\n Danielle DeVries | CNBC<\/p>\n European autos stocks notched gains during early trade on Friday, as investors reacted to the White House saying<\/a> the looming deadline for country-specific tariffs to come into effect was “not critical” and “could be extended.”<\/p>\n The moves also came after Beijing said<\/a> it had agreed with Washington on the details of a trade agreement negotiated in London earlier this month.<\/p>\n Europe’s Stoxx Automobiles and Parts index, which has shown sensitivity<\/a> to U.S. trade policy announcements this year, was last seen trading around 2% higher.<\/p>\n Top movers in the sector included Porsche and French vehicle parts supplier Valeo, both up 2.2%, as well as Stellantis, which gained 2%, and Mercedes-Benz, shares of which jumped 1.6%.<\/p>\n Vehicles and parts imported to the U.S. have been subject to a 25% tariff since April<\/a>. A 50% blanket tariff on European Union imports is currently suspended until July 9<\/a>.<\/p>\n Machinery and vehicles are the EU’s biggest export<\/a> to the United States.<\/p>\n \u2014 Chloe Taylor<\/p>\n China, U.S. agree on details of London trade framework, Beijing says<\/p>\n The U.S. and China have further confirmed the details of the trade agreement reached by both sides earlier this month\u00a0in London<\/a>, according to a\u00a0statement released<\/a>\u00a0by China’s Ministry of Commerce Friday afternoon.<\/p>\n Read more here.<\/a><\/p>\n \u2014 Anniek Bao<\/p>\n European stocks open higher<\/p>\n We’re 10 minutes into the final trading session of the week, and stocks are firmly in positive territory after White House Press Secretary Karoline Leavitt fueled optimism on Thursday<\/a> about the looming reciprocal tariffs deadline.<\/p>\n The pan-European Stoxx 600<\/a> index was last seen trading up 0.6%, with most sectors edging higher.<\/p>\n The tariffs-sensitive autos and mining sectors led gains, jumping 1.4% and 1.1%, respectively. Utilities stocks, often used as a hedge against market turbulence, were down by 0.1% during early trade.<\/p>\n \u2014 Chloe Taylor<\/p>\n Mediobanca promises shareholders $5.7 billion in bid to fend off MPS takeover<\/p>\n A Mediobanca Premier bank branch in Brescia, Italy, on Jan. 24, 2025.<\/p>\n Bloomberg | Bloomberg | Getty Images<\/p>\n Italian lender Mediobanca pledged<\/a> on Friday to return 4.9 billion euros ($5.7 billion) to shareholders over the next three years, as it continued to push back against a hostile takeover bid<\/a> from domestic rival Monte dei Paschi di Siena (MPS).<\/p>\n In a statement, Mediobanca said the proposed MPS offer “lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks.”<\/p>\n “The combined entity would have the profile of a medium-sized undifferentiated commercial bank, with high capital absorption, highly sensitive to the macroeconomic environment, without strengthening any of Mediobanca’s business segments and with the risks inherent in MPS’s financial statements remaining unchanged,” it said.<\/p>\n CNBC reached out to MPS for comment.<\/p>\n Read more on MPS’ 13-billion-euro bid for Mediobanca here.<\/a><\/p>\n \u2014 Chloe Taylor<\/p>\n Opening calls<\/p>\n Good morning from London.<\/p>\n European equities look set to extend yesterday’s gains<\/a> at the open on Friday.<\/p>\n Futures tied to the FTSE 100 are marginally higher, while those tied to Germany’s DAX and France’s CAC 40 indexes are up by 0.8% and 0.6%, respectively.<\/p>\n It comes after the Trump administration said<\/a> the July deadlines for so-called reciprocal tariffs “could be extended” and are “not critical.”<\/p>\n \u2014 Chloe Taylor<\/p>\n Trump trade deadlines in July \u2018not critical\u2019: White House<\/p>\n U.S. President Donald Trump arrives for a “One Big Beautiful” event at the White House in Washington, DC., U.S., June 26, 2025.<\/p>\n Nathan Howard | Reuters<\/p>\n President\u00a0Donald Trump<\/a>\u00a0could extend looming deadlines for reimposing steep\u00a0tariffs<\/a>\u00a0on imports from most of the world’s countries, the White House said Thursday.<\/p>\n Trump’s July 8 and 9 deadlines for restarting tariffs on those nations are “not critical,” White House Press Secretary Karoline Leavitt told reporters.<\/p>\n “Perhaps it could be extended, but that’s a decision for the president to make,” Leavitt said.<\/p>\n Leavitt also said Thursday that if any of those countries refuse to make a\u00a0trade\u00a0deal with the United States by the deadlines, “The president can simply provide these countries with a deal.”<\/p>\n In late May, Trump threatened to impose tariffs of 50% on imports from European Union nations, all of whom had already been subject to the reciprocal tariffs imposed in April.<\/p>\n