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Right now’s agenda: Israeli embassy workers killed in Washington; Telegram’s first annual revenue; Nestlé CEO interview; Burkina Faso’s anti-west icon; and has Starlink already received the house race?
Good morning. We start with the market fallout as Donald Trump strikes nearer to passing a sweeping funds invoice that may prolong tax cuts and enhance the US federal debt. Right here’s what you have to know.
Market response: US authorities bonds and shares fell. The 30-year Treasury yield reached its highest degree since late 2023 in night buying and selling in New York, extending a multi-day rise. The S&P 500 dropped 1.6 per cent, with greater than 95 per cent of its member shares ending the day decrease. Financials, actual property and healthcare had been the benchmark index’s worst-performing sectors, whereas a sell-off in Large Tech added to the decline. Bond costs recovered barely throughout Asia buying and selling this morning, whereas futures for the S&P 500 and Nasdaq edged greater.
Why that is taking place: Traders are nervous concerning the US fiscal outlook. The invoice is predicted so as to add at the least $3tn to the nationwide debt over the subsequent decade. Their fears had been additionally mirrored in a weak $16bn public sale of 20-year Treasuries, which had been bought at their highest rate of interest since 2020. Major sellers — banks required to purchase any unsold bonds — bought 16.9 per cent of the providing, above the common of 15.1 per cent. One analyst famous: “Markets actually haven’t any urge for food for length right here.” Read the full story.
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Explainer: Right here’s what Trump’s “big, beautiful” bill means for the US economic system and the president’s political agenda.
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The FT View: In its present kind, the invoice’s financial penalties danger being far uglier than Trump portrays, writes our editorial board.
For extra from Capitol Hill, sign up for our White Home Watch publication. Right here’s what else we’re preserving tabs on immediately:
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Financial information: The Eurozone, UK, US, France and Germany problem manufacturing and providers buying managers’ indices, whereas the UK experiences public sector funds and the European Central Financial institution releases minutes from its most up-to-date rate-setting assembly.
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Chagos Islands: The UK might signal a controversial deal to hand over the territory to Mauritius as quickly as immediately.
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Brussels Financial Discussion board: The EU’s economic system commissioner and chief executives of Renault and Electrolux are amongst these set to talk.
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Corporations: Johnson Matthey might announce the sale of its catalyst unit to Honeywell in a £1.8bn all-cash deal at its outcomes immediately. BT and easyJet additionally report.
Be a part of us for a subscriber-only webinar subsequent Wednesday for insights into probably the most consequential geopolitical rivalry of our time: the US-China showdown. Register now and put questions to our panel.
5 extra high tales
1. Two Israeli embassy workers members had been shot and killed in Washington exterior an occasion on the Jewish museum within the US capital late yesterday. Homeland safety secretary Kristi Noem stated her division was investigating and vowed to “convey this wicked perpetrator to justice”. More on this developing story here.
2. The EU is providing to increase tariff-free entry for American lobsters to entice Trump right into a broader commerce deal. A 2020 settlement to remove levies on the shellfish expires on July 31, however the bloc’s officers say it may very well be prolonged as a part of a bundle to take away the US president’s latest tariffs. Andy Bounds has more details from Brussels.
3. Trump attacked South Africa’s President Cyril Ramaphosa over his nation’s alleged mistreatment of white farmers at a televised White Home assembly yesterday. Trump at one level took the unprecedented step of projecting movies on to screens on the wall of the Oval Workplace purporting to indicate the persecution of white farmers. Here are more details from the meeting.
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Opinion: South Africa’s white minority does have justified anxieties, writes Alec Russell, however many are thriving and it’s absurd to talk of a “genocide”.
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Qatari jet: The Pentagon has formally accepted the $400mn luxury jumbo jet for use because the US president’s aircraft, regardless of bipartisan considerations about ethics and safety.
4. Unique: Telegram leapt to a $540mn revenue final yr, because the messaging app achieved fast development regardless of the continued French authorized proceedings towards its founder Pavel Durov. The Dubai-based group advised buyers it went from a $173mn loss in 2023 to its first annual revenue, in line with a company presentation seen by the Financial Times.
5. Unique: The UK has mentioned utilizing new laws to wipe out British Metal’s money owed of near £1bn, which some in authorities imagine might ease a sale of the enterprise, in line with Whitehall figures. The controversial transfer to erase cash owed to Chinese language proprietor Jingye might damage business confidence in the UK and exacerbate tensions with Beijing.
Information in-depth
Since taking energy in a 2022 coup, Burkina Faso’s Ibrahim Traoré has launched anti-corruption drives, sought to wrest higher management of his nation’s mineral riches from world mining corporations and realign away from former colonial ruler France and in direction of Russia. How did an obscure military officer become an anti-western icon on the continent?
We’re additionally studying . . .
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Nestlé: CEO Laurent Freixe advised the FT that his predecessor “weakened the fabric of the organisation” by diversifying into new merchandise.
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US market: Traders are asking “what next” because the fever over American exceptionalism breaks, writes Katie Martin.
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UK housing: Except you’re keen to maneuver additional afield, you is perhaps caught in your current house for longer than you expect, writes Neal Hudson.
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Eurostar’s rivals: Financing, regulation and totally different rail techniques imply potential rivals are years away from launching providers.
Chart of the day
With greater than 7,000 operational satellites circling the Earth, Starlink is by far the dominant drive within the trade. Whereas Amazon and rivals from China and Europe try to catch up, has Elon Musk’s firm already won the new global space race?
Take a break from the information
What distinguishes the best airport lounges? Frequent flyer Andrew Jones has criss-crossed the world to seek out the reply. Sweeping structure, shoeshines and “a way of the journey that awaits you” are some of the things to look out for.
