Global and Luxembourgish News 02.-08. September 2025
Week 36: This week investors reacted to weakening US labour data and inflation risks while central banks globally reassessed rate‑cut expectations. In Luxembourg, domestic property lending rebounded and controversy arose over regulatory practices.
Luxembourgish News
Luxembourg Banks Lift Property Lending After Two‑Year Slump
Picture: Stock Library
After a two‑year lull in property financing, Luxembourg banks saw an uptick in lending during Q2. The renewal of mortgage and real‑estate loans suggests a revival in borrower appetite and possibly improved market confidence. This rebound may reflect easing credit conditions or renewed consumer interest in housing investments. The upward trend could also translate into broader economic stimulus through construction and related sectors. Continued monitoring will reveal whether this marks the start of a sustained recovery.
Source: Luxembourg Times
Protest at CSSF Over Controversial Bond Approval
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The Activists staged a protest outside the CSSF headquarters criticising regulator decisions related to approving Israeli bond sales. Protesters argue that Luxembourg could bear complicity in financing war‑related activities, presenting reputational risks for the financial centre. The event reflects growing scrutiny of ethical dimensions in investment oversight and regulatory actions. The CSSF's response will be closely watched as it balances oversight responsibilities with public accountability.
Source: Luxembourg Times
Global News
US Employment Slows, Nudging Fed Rate‑Cut Betting
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US private payrolls and jobless claims signalled a meaningful cooling in the labour market this week. Stocks and bonds rallied on weaker‑than‑expected figures stoking expectations of Federal Reserve easing. Meanwhile gold surpassed both the euro and U.S. Treasuries in central‑bank reserves for the first time since 1996, reflecting a shift in global reserve strategy. The rise in gold to 27 % of reserves versus Treasuries at 23 % underscores investor desire for safe havens amid uncertainty. Markets remain vigilant ahead of August jobs and inflation data to shape Fed's near‑term policy path.
Source: Reuters
US Inflation Data Could Tip Scales for Fed, ECB, China Policy
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August US inflation data is poised to influence Federal Reserve decisions amid signs of waning labour demand. If CPI falls short of expectations, markets anticipate a significant rate reduction. In Europe, the ECB is expected to hold steady at 2 % unless economic conditions worsen. In China deflation may continue, with CPI possibly down 0.2 % and PPI around –2.9 %. Analysts debate whether China can reflate through industrial policy or needs deeper market reforms.
Source: Financial Times
OPEC+ to Ramp Up Oil Supply, Pressuring Prices
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OPEC+ announced a modest output increase of 137,000 barrels per day next month, primarily from Saudi Arabia and the UAE, aiming to regain market share. The move marks an early unwinding of prior cuts and adds to the 2.5 million barrels per day restored since April. Brent crude recently dropped by 15%, settling around $65.50 per barrel, squeezing oil companies’ margins. OPEC+ remains cautious, monitoring demand closely, the next meeting is set for October 5.
Source: The Times
