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Today’s agenda: Gulf acquisition spree retreat; Standard Chartered sued over 1MDB; US sanctions reprieve for Syria; UK takeover leaks; and pay for superstar AI talent
Good morning. We begin in Washington, where Donald Trump’s top trade officials are scaling back ambitions for comprehensive reciprocal deals with foreign countries to avert the looming reimposition of US tariffs next week.
What we know: US officials were seeking phased deals with the most engaged countries as they race to find agreements by July 9, when the president has vowed to reimpose his harshest levies, people familiar with the talks said.
The narrower, piecemeal plan for new deals marks a retreat from the White House’s vow to strike 90 trade deals during the 90-day pause in the sweeping “reciprocal” tariffs Trump announced on April 2. But it also offers some countries a chance to strike modest agreements.
What happens next: Countries that agree these narrower deals would be spared the harsher reciprocal tariffs, but left with an existing 10 per cent levy while talks on thornier issues continue, the people said. The administration was also still considering imposing tariffs on critical sectors, they said.
The twin track, involving the threat of new tariffs alongside openness to deals, highlights the difficulty facing negotiators with Trump, who has used trade as a cudgel to secure concessions from other countries. Aime Williams has the full report.
Brazil-Mexico trade talks: Latin America’s two largest economies are discussing how to build on their existing trade agreement as they seek to boost commercial partnerships beyond China and the US.
‘Big, beautiful bill’: President Trump’s tax legislation has inched closer to passage as Senate Republicans charged ahead with their efforts to get it over the line.
And here’s what else I’m keeping tabs on today:
Economic data: Germany publishes labour market data for May while the Eurozone releases inflation estimates. Eurozone, France, Germany, Italy, UK and US also have manufacturing purchasing managers’ indices.
Central banks: The heads of the European Central Bank, the Federal Reserve, the Bank of England, the Bank of Japan and the Bank of Korea participate in a panel at an ECB forum in Portugal.
EU: Denmark assumes EU council presidency.
UK: The Commons vote on the welfare bill has become a key test for Prime Minister Sir Keir Starmer as he approaches the first anniversary of his time in office.
This Thursday, join Stephen Bush, Miranda Green and Robert Shrimsley for a live Q&A on Labour’s next moves after a turbulent 12 months. Submit your questions here.
Five more top stories
1. Exclusive: Saudi Aramco and Abu Dhabi National Oil Company, two of the Middle East’s largest oil companies, are scaling back their multibillion-dollar acquisition sprees as expectations of a sustained drop in oil revenues curb their global dealmaking. Here’s what the pullback could mean for markets.
2. Liquidators who are trying to recoup billions of dollars siphoned initially from Malaysia’s sovereign wealth fund are seeking more than $2.7bn from Standard Chartered, in a lawsuit filed against the UK-headquartered bank over its alleged role in the scandal. The suit represents the latest attempt to recover money taken from 1MDB as part of a decade-long hunt that has involved several of the world’s largest banks.
3. Spain has become a test of Europe’s ability to boost its hard power as Nato’s most reluctant military spender seeks to transform state-backed Indra from an IT-led business known for radars into a defence champion that can rival the likes of the UK’s BAE and Germany’s Rheinmetall.
4. Exclusive: In the 14 months to May this year, nearly four in 10 UK takeovers were reported in the media before they were announced, triggering concerns at the UK’s Financial Conduct Authority that the London stock market is becoming leakier. Martin Arnold has the details.
5. The US has lifted most of its sanctions on Syria, saying the move would give the country an “opportunity” to rebuild an economy ravaged by more than 14 years of civil war. Here’s what the sanctions relief means for the Arab state.
The Big Read
From Norway’s Arctic region to Poland’s border with Belarus, Nato allies are working together to predict what a Russian attack might look like — and how the alliance would respond to one. Explore how Nato nations are fortifying the eastern frontier in this visual story.
We’re also reading and listening to . . .
AI and ‘urgency claims’: Being a second-mover is useful when the benefits of a new technology are uncertain and the risks are high, because what you lose in speed you gain in information, writes Sarah O’Connor.
Ghosts of Brexit: Switzerland’s deal to keep access to the EU’s single market includes all the same thorny issues that have bedevilled the UK-EU relationship.
Chinese economy: Beijing could use this moment of stability to rally people around needed reforms that tackle deep structural issues, writes Eswar Prasad, professor at Cornell University.
Tech Tonic 🎧: Meta chief executive Mark Zuckerberg has undergone a transformation, both physical and political. But is this all an act?
Chart of the day
The intense battle to poach top artificial intelligence researchers and engineers from rivals has spurred a rapid escalation in wages, as tech groups such as Meta and OpenAI race to gain the competitive edge. Top tech staff are being lured with far higher pay than computer engineers without AI experience, data shows.
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Take a break from the news
As part of its Wimbledon special, FT Globetrotter sits down with the All England Lawn Tennis Club’s head gardener to find out what it takes to get the courts immaculately green and the grounds top seed.
