Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 285

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 285
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 so far the main price indices show no signs 
 of any impacts from the tariffs, although there is still a lot of uncertainty in that respect.                       |

A-21

| – | As for monetary policy, the European Central Bank and the Bank of England continued with their interest rate cuts,                             
 while the Federal Reserve put them on pause against a backdrop of heightened uncertainty over the impact of the Trump administration’s agenda. |

| – | The markets reacted with intensity to the tariffs announced by the United States in April, with sharp declines in                                                                                                                                  
 stock markets, increases in various volatility indices, and significant rebounds in corporate loan spreads. The US dollar, unlike in previous episodes of risk aversion, experienced a widespread depreciation this time around. All of the losses 
 sustained by risk assets during April’s episode were reversed after Trump announced a trade truce. In any case, there is still some evidence that investors have lost confidence in US assets.                                                     |

| – | Long-term government bond yields in the main developed economies ended the first half of the year with no major                               
 changes. It is worth noting that in April, US public debt temporarily stopped acting as a safe haven asset, although this was later reversed. |

| – | The euro, in its currency pair with the US dollar, appreciated by close to 14% in the first half of 2025, standing at 
 1.18 dollars per euro. These are levels that had not been seen since mid-2021.                                        |

Political and regulatory environment In a context marked by calls for simpler regulations by European institutions, the European Commission unveiled its European Competitiveness Compass on 29 January 2025. The main aim of this proposition is to restore and boost the competitiveness of the European Union, building on the recommendations set out in the Draghi and Letta reports. The initiative places particular emphasis on the need to alleviate the regulatory and administrative burden placed on companies, through the simplification of rules and laws as a strategic means of boosting economic growth and operating efficiency. In line with this approach, on 26 February 2025 the European Commission adopted the legislative proposal known as ‘Omnibus’, which aims to simplify existing legislation in the field of sustainability, reduce reporting burdens and boost the competitiveness of European companies. The European Commission is also spearheading the Savings and Investment Union (SIU) initiative, which aims to create better financial opportunities for citizens by more efficiently connecting savings and productive investments. As a first step in the legislation required by this initiative, a package of measures aimed