Global and Luxembourgish News 26.-01. September 2025
Week 35: Markets wavered amid slowing Chinese manufacturing, U.S. policy shocks, and uncertainty over the Fed’s independence, while Luxembourg implemented stricter financial oversight and introduced new tools for pay transparency. Let’s break it down.
Luxembourgish News
CSSF imposed €11 million in fines in 2024
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Luxembourg’s financial regulator, the CSSF, imposed €11 million in fines in 2024—almost double the total of the two previous years. A €3 million sanction against BGL BNP Paribas was the single largest penalty. The fines reflect tighter enforcement and closer scrutiny of financial institutions in areas such as AML and risk management. Analysts say the regulator’s tougher stance highlights Luxembourg’s intent to safeguard its reputation as a leading financial hub.
Source: Luxembourg Times
Chambre des salariés launches salary comparison tool
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The Chambre des Salariés has unveiled a new salary comparison tool that allows employees to benchmark their pay against national averages by sector and role. Available on the CSL website, the tool enhances transparency in wage levels and supports informed discussions on fair pay. The initiative is expected to strengthen collective bargaining and empower workers to evaluate their career options better.
Source: Chambre des Salariés
Global News
China’s factory activity falls further, deepening cooling fears
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China’s official manufacturing PMI fell to 49.4 in August, marking its fifth straight month of contraction and missing forecasts. Export weakness, sluggish domestic demand, and property market pressure continued to drag on activity. Services and construction fared slightly better, but the composite PMI only improved marginally to 50.5. Analysts warn that unless export demand improves or the government introduces stronger fiscal support, economic momentum may remain fragile into the final quarter.
Source: Reuters
Global equity fund inflows weaken amid Fed independence concerns
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Global equity fund inflows slowed significantly in the week ending August 27, with just $2.96 billion flowing in, the smallest inflow since early August. Equity allocations in Europe, the U.S., and Asia all lost momentum. Investors shifted toward bond and money market funds amid growing unease over Federal Reserve independence following political pressure. The cautious allocation trend underscores fragility in market sentiment.
Source: Reuters
U.S. court rules most Trump-era tariffs illegal, adding trade uncertainty
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A U.S. appeals court has declared that most of President Trump’s tariffs are illegal, striking a blow to the administration’s key trade lever. However, the tariffs will remain in force until mid-October while the case is appealed, maintaining short-term uncertainty for businesses and markets. The ruling comes as global supply chains remain fragile and trade policy remains a risk factor for economic stability. Analysts say the decision raises hopes for tariff relief but leaves markets on edge as the legal process unfolds.
Source: Reuters
