French luxury group LVMH posted a 1% increase in third-quarter sales, driven by improving demand in China and steady performance in Europe and the U.S. The company’s shares rose between 7% and 12%, lifting the broader European luxury sector. Executives pointed to innovation and craftsmanship as competitive advantages, while reiterating calls for stable trade relations between major Western economies and Asian markets.

A European Central Bank report concluded that recent U.S. tariff increases have eroded business confidence and raised job-security concerns among EU manufacturing workers. The study found the impact concentrated in high-value export industries such as machinery and automotive parts. While the direct economic effect remains moderate, officials said prolonged uncertainty could possibly discourage investment.

The International Monetary Fund urged the European Union to adopt structural reforms that could lift annual GDP growth from roughly 1% to 3% over the next decade. Key recommendations include reducing energy costs, improving labor mobility, and harmonizing insolvency and investment rules. The IMF estimates that internal EU trade barriers equate to tariffs of 44% for goods and 110% for services. European Commission officials welcomed the findings but warned of political resista

Bank of England Governor Andrew Bailey said the UK’s exit from the EU will leave the economy around 4% smaller in the long term than it would have been inside the single market. Bailey cited persistent trade frictions and reduced labor mobility as major factors. Business groups in both London and Brussels are urging renewed cooperation on research, financial services, and standards alignment to stabilize cross-Channel trade.

Germany’s Bundesbank President Joachim Nagel called for a more “assertive and coordinated” European response to China’s industrial and export policies. Speaking in Frankfurt, Nagel warned that state subsidies and rare-earth controls from Beijing could distort competition and weaken Europe’s manufacturing base. He said the EU should diversify supply chains and deepen cooperation with the U.S. and like-minded partners to reduce dependency on Chinese critical materials.