News related to
European

European regulators are finalising a set of remedies with Abu Dhabi-based oil major ADNOC for its €14.7 billion bid to acquire chemical manufacturer Covestro, adjustments that aim to satisfy concerns under the EU’s Foreign Subsidies Regulation.

ADNOC is expected to convert a planned €1.2 billion capital increase into a shareholder loan bearing market terms. The move seeks to counter claims by the European Commission that the proposed capital equity injection could constitute unfair foreign aid under EU rules. In addition, ADNOC will likely address issues around an alleged unlimited state guarantee and commit to keeping Covestro’s intellectual property and technology within Europe.

The EU launched its formal investigation in July to assess whether UAE-based government support might distort competition in the internal market. Scrutiny has focused on whether ADNOC’s offer price, bolstered by state subsidies such as guarantees and capital injections, created an unlevel playing field. A regulatory deadline of 2 December looms for the European Commission’s final decision.

ADNOC has expressed frustration with the breadth of information requests from the Commission, describing them as “disproportionate and invasive.” The company warned that such demands could threaten the viability of its acquisition bid if not managed carefully.

Negotiations involve high level officials: ADNOC CEO Sultan Ahmed Al Jaber spoke with EU antitrust chief Teresa Ribera about the remedy proposals. ADNOC will likely mirror similar steps taken by UAE telecoms group e&, which recently prevailed in an EU review by eliminating an unrestricted state guarantee and following domestic bankruptcy statutes more closely.

Covestro, which produces materials used in insulation, automotive parts and consumer goods, would be one of the biggest acquisitions of an EU firm by a Gulf state if the deal proceeds. The transaction, announced in October, has drawn close attention for being ADNOC’s largest ever and for raising questions about foreign capital’s role in European markets.

Bitcoin traded in a tight range near $111,500 to $112,300 as market participants paused, waiting for fresh cues from upcoming Consumer Price Index, Producer Price Index and central bank announcements. This positioning reflects prudence amid heavier macroeconomic noise.

Solana climbed to around $218 to $220, marking a multi-month high as renewed interest drew capital from more established tokens. Meanwhile, Dogecoin extended a weekly gain to approximately $0.24, buoyed by optimism surrounding the imminent debut of the first U. S. memecoin exchange-traded fund.

SignalPlus head of insights Augustine Fan noted that crypto markets have been relatively flat recently, with Bitcoin underperforming both its major peers and traditional assets such as equities and spot gold. That underperformance accompanied weaker inflows into digital asset trusts and reduced activity on centralised exchanges.

Economists have also dialled back inflation and recession worries following revisions to U. S. labour data, prompting some rebound in market sentiment. Bitcoin, alongside European equities, saw support as experts downplayed fears of stagflation.

Prediction markets suggest that a rate cut from the Federal Reserve is increasingly likely, with sentiment split between a further cut or a hold in October. Gold reached record levels in anticipation of looser monetary policy, even as U. S. equity indices pushed higher.

Positioning remains defensive, but the rotation into altcoins signals willingness among traders to explore higher-beta opportunities. Reflecting this, the phrase Traders Push Bitcoin Above $112K captures the shifting dynamic in crypto allocations—but notably, attention remains fixed on upcoming U. S. data releases shaping the next phase of the market.

Liquidity has stayed modest. Reference points in the $110K–$112K zone appear increasingly important as support amid a backdrop of uncertainty.

Mastercard and Circle have deepened their collaboration to enable settlement of transactions in USDC and EURC stablecoins for acquirers and merchants across Eastern Europe, the Middle East and Africa. Arab Financial Services and Eazy Financial Services are among the first institutions to access this capability, which integrates stablecoin payments into Mastercard’s established global network.

The initiative marks a clear shift towards tokenised money. Mastercard’s President for EEMEA, Dimitrios Dosis, emphasised the ambition to bring stablecoins into mainstream finance by investing in infrastructure, governance and partnerships, while leveraging the company’s longstanding expertise in security and compliance. Kash Razzaghi, Chief Business Officer at Circle, framed the move as a step towards “borderless, real‑time commerce,” seeking to make USDC as ubiquitous as traditional payments.

Arab Financial Services highlighted the tangible value of the new model: improved liquidity, operational efficiencies and dramatically reduced friction in high‑volume reconciliations. Eazy Financial Services underscored how the expanded settlement option aligns with its mission to offer faster, more secure, and efficient payment solutions, setting a fresh standard for digital settlements in EEMEA.

This development builds on existing collaborations such as crypto payment card solutions with the likes of Bybit and S1LKPAY, which already use USDC for settlement in the region. Mastercard further extends its stablecoin portfolio beyond USDC and EURC, already supporting USDG, FIUSD and PYUSD across various use‑cases spanning remittances, B2B, and payouts via platforms like Mastercard Move and the Multi‑Token Network, underpinned by its Crypto Credential and Crypto Secure frameworks.

Financial infrastructure experts view the rollout as particularly meaningful for emerging markets. World Bank data indicates cross‑border transfer costs remain high—around 8% on average—far exceeding the UN’s Sustainable Development Goal threshold of 3%. Introducing stablecoin settlement is expected to trim costs, accelerate transfers, and bolster working capital and currency resilience for small and medium businesses.

Analyses point to early adopters witnessing significant gains: settlement speeds up by 30%, and liquidity costs drop around 20%, according to some reports. Mastercard’s compliance infrastructure, combined with evolving regulatory frameworks like the European MiCA and US GENIUS Act, fosters institutional trust in this digital settlement evolution.

Circle is working to fortify USDC’s global footprint beyond this initiative. Its broader strategy includes partnerships with Finastra to plug USDC into traditional payment hubs, OKX for zero‑fee USDC conversions, and ventures with SBI Group and Ripple in Asia—all aimed at building liquidity, interoperability and widespread adoption.

Despite the volatility, adoption on the Stellar network continues to advance. The Stellar Development Foundation reports that the network is approaching 10 million registered accounts, bolstered by an influx of 5,000 to 6,000 new corporate wallets added every day. Partnerships with payment giants such as MoneyGram and Circle remain instrumental, underpinning the network’s increasing relevance in cross‑border and blockchain‑based payments infrastructure.

Institutional activity remains a double‑edged sword. While selling pressure drove the price lower, it was also institutional buyers who provided critical support during the final trading hours. Analysts observing the movement between US and European market hours noted a sharp intraday decline followed by a swift rebound, suggesting opportunistic accumulation among corporate participants.

These market fluctuations align with broader patterns. Just a day earlier, XLM had floated between $0.38 and $0.39—posting a 3 % intraday gain amid unusually high volumes, interpreted as evidence of institutional accumulation and rebounding sentiment.

Looking ahead, several on-chain and technical indicators suggest that the token’s trajectory will hinge on whether supportive fundamentals can withstand market turbulence. The momentum in account growth and network partnerships points to robust infrastructure development, but the path to renewed price strength may depend on whether XLM can reclaim levels above $0.38–$0.40 on sustained institutional demand.

This pattern of decline followed by recovery highlights the tension between short-term volatility and enduring network utility. XLM’s immediate price response may be driven by sentiment, yet the underlying metrics suggest steady progress toward adoption and financial infrastructure resilience—terms of increasing importance in a shifting regulatory and institutional landscape.

Commerce and Industry Minister Piyush Goyal said today that a free‑trade agreement with Oman will be finalised soon, while Qatar has expressed interest in negotiating a similar pact. Concurrently, he confirmed that negotiations with the European Union are gathering pace.

Speaking at a New Delhi event, Goyal assured exporters of government support to navigate global trade uncertainties—particularly those triggered by unilateral policies of other nations. He emphasised ongoing consultations with stakeholders, including Indian diplomatic missions, aimed at diversifying export markets and strengthening domestic consumption through Goods and Services Tax reforms. Goyal asserted that exports this year are poised to exceed last year’s levels.

Progress on the Oman front appears particularly advanced. Goyal characterised the India–Oman free‑trade agreement as “almost finalised,” suggesting that formal conclusion is within reach.

At the same time, Goyal reiterated that Qatar, along with Saudi Arabia, is keen on forging trade agreements with India, signalling growing interest from Gulf cooperation partners. Notably, India and Qatar had earlier set a goal to double bilateral trade to US$28 billion over five years—a vision reinforced by renewed discussions of a free‑trade pact.

Meanwhile, Europe remains a focal point. Goyal referenced rapid progress in FTA talks with the EU, and earlier this year had projected that negotiations could be concluded before the end of 2025. He expressed confidence that both sides may even exceed expectations and wrap up the deal ahead of schedule. The European Commissioner for Trade, Maroš Šefčovič, is expected in New Delhi in September to oversee the conclusion of the 13th round of discussions, which are likely to address remaining sticking points.

Goyal portrayed this as part of a broader, much‑intensified trade diplomacy, describing India’s approach as negotiations “from morning till evening” with multiple partners including the US, Chile, Peru, and others. He emphasised that each agreement will be grounded in national interest and industrial benefit, stressing that India will uphold its self‑respect and not compromise in negotiations—even as global trade tensions evolve.

These developments unfold against a backdrop of mounting trade headwinds. India’s share in global trade remains relatively modest, at around 2 percent, while nearly 40 percent of its exports to the US remain outside the scope of the newly imposed 50 percent tariffs—muting some of the trade impact.

India’s trade strategy appears to be one of diversification and resilience, deepening ties across regions—from the Gulf to Europe to the Americas. With multiple free-trade agendas advancing simultaneously, key pivots such as the Oman deal, Gulf engagement, and an EU agreement could reshape economic dynamics in the coming months.