Evening Briefing: Europe

The Netherlands is on the brink of an unprecedented political crisis as Prime Minister Dick Schoof and his cabinet face a no-confidence motion in parliament, a move that could lead them to step down. Next steps are being discussed in a parliamentary debate today.

The trigger for the upheaval is disagreement over imposing tougher measures against Israel because of its war in Gaza, which prompted a center-right party to quit the ruling coalition last week. The crisis escalated today when Stephan van Baarle, head of the DENK party, filed the motion.

The Dutch ructions add to strains in Europe, with France’s government also on the brink of collapse — albeit for different reasons. In France, it’s a dispute about Prime Minister Francois Bayrou’s budget plan, which caused him to call a vote of confidence for Sept. 8.

Markets reacted to the Dutch news with relative calm. Local stocks were little changed, and the yield premium on Dutch 10-year bonds over German peers remained steady. French spreads widened, however. — Philip Lagerkranser

What You Need to Know Today

The European Union will seek to fast track legislation by the end of the week to remove all tariffs on US industrial goods, something President Donald has demanded. The European Commission will also give preferential tariff rates on some seafood and agricultural goods, people familiar say. Officials have conceded that the US is getting the better bargain: Commission President Ursula von der Leyen previously described it as “a strong, if not perfect deal.”

It’s been a hot summer for dealmaking. Announced transactions since the start of June have crossed the $1 trillion mark, the most since the record-breaking summer of 2021, our data show. Among the blockbuster deals are Union Pacific’s acquisition of Norfolk Southern, Palo Alto Networks’s planned takeover of CyberArk and Keurig Dr Pepper’s purchase of JDE Peet’s. The latter deal could mean a big payday for JDE Peet’s CEO Rafa Oliveira.

The International Monetary Fund wants more discussions with Senegal’s government about under-reporting of loans by the previous administration, which it says has left the country’s debt at 119% of GDP. The request suggests getting more funding may be a protracted process for Senegal. An earlier audit found the state had hidden $7 billion of borrowing, leading the IMF to suspend a $1.8 billion loan.

Giorgia Meloni vowed to relaunch a proposed change to how Italian prime ministers are chosen, an effort that’s previously appeared to receive tepid popular support. The Italian prime minister said today that government heads should be elected directly, casting it as good for stability. Currently, the Italian president appoints the prime minister based on polls and discussions with party leaders.

Giorgia Meloni Photographer: Davide Gennari/LaPresse

Russian oil shipments appear to be feeling the pinch from Ukrainian drone strikes on its pipelines and US tariffs on India, a major buyer of Russian crude. Tanker-tracking data we’ve compiled show crude shipments from Russian ports dropped by 320,000 barrels a day in the week to Aug. 24. Ukraine has stepped up attacks on Russia’s oil infrastructure, and shipments to India have fallen recently.

Boeing has accelerated deliveries of its top-selling jetliner 737 Max to Ryanair, the budget carrier’s CEO Michael O’Leary said. Boeing CEO Kelly Ortberg is “doing a great job,” said O’Leary, adding that aircraft are coming out of Seattle “faster and quicker with fewer defects.” Boeing officials have told O’Leary they’re targeting a production rate of 42 a month for the 737 “sometime in September and October,” he said.

American Eagle is back in the spotlight again, picking football star Travis Kelce as its newest face after a controversial campaign with actress Sydney Sweeney. Investors cheered the move, sending American Eagle shares jumping today. The drop is well timed, directly following Kelce’s blockbuster engagement to pop sensation and billionaire Taylor Swift.