Trump says Nato’s Article 5 has ‘numerous definitions’, alarming summit

At the moment’s agenda: Israel-Iran truce; Russian shadow crypto funds; New York mayoral race; oil markets shrug off Center East tumult; and St Paul’s Cathedral 350th yr in photos

Good morning. We begin with the Nato summit at the moment, as world leaders gathered at The Hague brace themselves for Donald Trump. Right here’s what to anticipate.

What did Trump say? The US president has sparked alarm by telling reporters that Washington’s dedication to Nato’s Article 5, which refers to its mutual defence pact, “is dependent upon your definition”. Trump stated there have been “quite a few definitions” of Article 5. “I’m dedicated to being their buddies. I’m going to offer you an actual definition once I get there.”

Why it issues: The US is irreplaceable as a Nato member, with many European nations relying on American arms and intelligence property. The summit rests on what Trump decides, officers say, with the whole assembly “fastidiously choreographed” to keep away from upsetting him. Nato secretary-general Mark Rutte has additionally praised Trump for making Europe “pay in a BIG way”, referring to a defence spending goal of 5 per cent of GDP. Trump has beforehand threatened to solely defend allies that spend extra on defence.

What to look out for: Aside from whether or not Trump waters down safety commitments for Europe, Spain’s resistance to spending extra on defence has additionally undermined efforts amongst Nato members to show unity. Whereas many allies together with Germany, France and the UK have dedicated to assembly Trump’s new goal, Spain has secured an opt-out, growing the probability of a conflict on the summit. Trump has known as it a “downside” and stated it was “very unfair to the remainder of the folks”.

Here’s more on what to expect at today’s gathering.

• Europe shouldn’t go it alone: Engaged on defence production along with the US is significant to mutual safety, writes former US defence secretary Lloyd Austin.

And right here’s what else we’re conserving tabs on at the moment:

• Financial information: France has its shopper confidence survey for this month.

• Outcomes: Babcock, Normal Mills, Halfords, Liontrust and Micron report earnings.

• Glastonbury: The most important greenfield music and performing arts pageant on the planet begins in Somerset, England.

Be part of FT consultants and friends for a subscriber-only webinar at 1pm BST at the moment as they talk about the Center East battle and what it means for the world. Register for free.

5 extra high tales

1. The US air strikes on Iran set again Tehran’s nuclear progress by lower than six months, in accordance with an early US intelligence evaluation, casting doubt on Trump’s claims that the programme had been “obliterated”. The findings had been furiously rejected by the White Home, which stated they had been leaked by “an anonymous, low-level loser in the intelligence community”.

• Fragile truce: The president lashed out at each Israel and Iran as he tried to protect the shaky ceasefire he brokered in a flurry of telephone diplomacy.

• A brand new Center East: The US and Israeli marketing campaign to defang Iran may herald a fresh era of instability for the area.

• The ‘12-day struggle’: Trump’s evocation of the reminiscence of the six-day struggle of 1967 is double-edged, writes Gideon Rachman.

2. The UK is ready to purchase US-made jets that may carry nuclear weapons, Prime Minister Sir Keir Starmer is ready to announce at the moment on the Nato summit. Below the plans, Britain will be part of the army alliance’s airborne nuclear mission, and the 12 F-35 stealth fighters are anticipated to hold American atomic bombs. Here’s more on the sweeping defence overhaul.

• US-UK ties: A majority of Britons view the US as a “serious threat” to safety after the election of Trump, in accordance with a latest survey.

3. Unique: A brand new cryptocurrency token designed to permit cross-border funds despite western sanctions on Russia, launched by a fugitive Moldovan oligarch and a Russian defence sector financial institution, has moved some $9.3bn on a devoted crypto trade in simply 4 months because it was launched, the FT has discovered. Read the full story.

4. Unique: EDF may promote some property beneath a portfolio evaluate as its boss seeks to satisfy French authorities calls for to give attention to new nuclear reactors. Folks with information of the matter stated Bernard Fontana advised insiders he needed to evaluate which property weren’t worthwhile or didn’t match with the state-owned energy group’s strategic priorities.

5. OpenAI and Sir Jony Ive have been accused of attempting to “bury” a rival start-up that compelled their $6.4bn AI system enterprise to drag down advertising supplies. The chief government of iyO stated he had been “blindsided” by the launch of io, OpenAI’s partnership with Apple’s former design chief, as each corporations had previously been in deal talks with his similarly named start-up.

Information in-depth

For a minimum of three a long time, Iran’s supreme chief Ayatollah Ali Khamenei and the hardline centres of energy that encompass him have resisted structural reforms. However the surprising repercussions of Israel and the US’s assault imply {that a} shift in course now appears inevitable, analysts say, setting into movement what might be the most consequential changes since the 1979 Islamic revolution.

We’re additionally studying . . . 

• HSBC: The financial institution’s newest reorganisation has arguably left it with few options to spice up income because it faces commerce tariffs and decrease rates of interest.

• Deal starvation: US banking mergers will accelerate over the subsequent yr, executives predict, pushed by a extra beneficial strategy from regulators.

• Ukrainian refugees: Robust labour markets and insurance policies have helped these fleeing Russia’s invasion to succeed in other countries, writes Sarah O’Connor.

• New York vote: Former governor Andrew Cuomo has conceded to progressive rival Zohran Mamdani, in a mayoral race that has highlighted a rift in the Democratic party.

Chart of the day 

As Iran began firing missiles at a US air base in Qatar on Monday, oil merchants responded with exceptional pace — not by shopping for, however by promoting. Many observers had been stunned on the pace of the sell-off, in a market that sometimes surges at any signal of geopolitical strife. Here’s why traders shrugged off the Middle East tumult.

Take a break from the information

To have a good time the 350th anniversary of St Paul’s, the FT’s Charlie Bibby was allowed unprecedented entry to its interior workings. Our chief photographer reveals the unsung heroes who make the world-famous London cathedral tick.