Weekend Papers Summary
FINANCIAL TIMES
-Joe Biden has held crisis talks with the top House Democrat, Hakeem Jeffries, as he tries to silence calls from lawmakers in his own party for him to abandon his re-election bid against Donald Trump. Jeffries relayed to Biden the "full breadth of insight, heartfelt perspectives and conclusions about the path forward". The meeting was the first sign of congressional leadership movement since Biden's damaging debate performance sparked panic in the party. Biden spoke with members of the Hispanic and Asian Pacific American caucuses and will hold a virtual meeting with the New Democrats, a self-styled "pragmatic" group, on Saturday. Biden's team hoped an hour-long news conference on Thursday would end the rebellion, which brought a fundraising boost, including nearly 40,000 grassroots donations and a seven-fold rise in online donations during the press conference.
-Joe Biden has defended his candidacy despite the controversy surrounding his age and political viability. He stated that he will not step back if he struggles to complete his duties, despite the lack of indication of such a situation. Biden made a significant mistake by referring to vice-president Kamala Harris as "vice-president Trump" and Ukrainian leader Volodymyr Zelenskyy as "President Putin." Despite this, Biden hopes his performance will prevent a full-blown Democratic rebellion against his candidacy, which has been brewing since his disastrous performance in the debate with Donald Trump.
-US banks JPMorgan Chase, Citigroup, Wells Fargo, and BNY have warned that lower-income customers are experiencing financial stress just ahead of the presidential election. The banks warned about consumers grappling with lower savings and higher prices. The financial health of consumers could play a crucial role in the outcome of November's presidential vote. Consumer sentiment remains "stubbornly subdued" and fell to an eight-month low of 66, according to the University of Michigan survey. Citi's US consumer lending business, including credit cards, plunged 74% from a year ago.
-Pakistan has secured a $7B medium-term financing deal from the IMF, providing a reprieve for the government as it navigates the country's crisis-hit economy. The IMF announced a preliminary agreement with Prime Minister Shehbaz Sharif's government for a 37-month financing program under an extended fund facility. The deal is Pakistan's 24th bailout with the multilateral lender and will now go to the IMF's executive board, which is expected to approve the loan. The program aims to capitalize on the macroeconomic stability achieved over the past year by strengthening public finances, reducing inflation, rebuilding external buffers, and removing economic distortions to spur private sector-led growth.
-Unilever plans to cut around a third of all office roles in Europe by the end of next year, as the company's new CEO aims to boost growth. The FTSE 100 company, under pressure from shareholders and activist investor Nelson Peltz, has announced that up to 3,200 roles will be cut in Europe by the end of 2025. The job cuts are part of Unilever's "productivity programme" that includes slashing up to 7,500 global roles. The company employs 10,000 to 11,000 office-based staff in Europe.
-Former New York mayor Rudy Giuliani can no longer use bankruptcy proceedings to avoid a $148M judgment for defaming two US election workers. A judge threw out Giuliani's case, allowing them to pursue his homes and earnings. Judge Sean Lane ruled that Giuliani failed to provide an accurate financial picture and had not even retained an accountant. Giuliani filed for Chapter 11 protection in December after being found liable for spreading a conspiracy theory about a mother and daughter who counted votes in Georgia during the 2020 presidential election.
-Meta has lifted restrictions on Donald Trump's Facebook and Instagram accounts, despite his rhetoric against its CEO Mark Zuckerberg. The social media company stated that Trump would no longer be subject to heightened suspension penalties, as it believes the American people should have equal access to nominees for president. Trump used social media to secure the 2016 presidency and during his time in the White House. However, his Meta accounts were frozen for two years in early 2021 due to his claims of election rigging and his praise of a group of supporters who stormed the US Capitol.
-Benjamin Netanyahu has stated that Israel will maintain control over the crossing between Egypt and Gaza indefinitely, indicating a long-term military presence. The Israel Defense Forces took control of the Gazan side of the Rafah border crossing to Egypt in May and have expanded their control to include the entire Philadelphi corridor, the besieged enclave's entire border with Egypt. The Israeli prime minister has instructed negotiating teams, made it clear to US representatives, and informed the cabinet about it. Gaza's other crossings are with Israel, allowing the country to control the entire Palestinian territory's borders. Negotiators are aiming to release around 120 hostages held by Hamas in Gaza.
-Poland's Prime Minister Donald Tusk has failed to reverse parts of an abortion ban passed by the previous ultraconservative government. The conservative agrarian Polish People's party (PSL) joined the rightwing opposition and voted against a bill that would have decriminalized helping women terminate their pregnancies, including offering them emergency contraception pills. Under current rules, doctors and pharmacists can be sentenced to up to three years in prison for providing help. The outcome is a blow for Tusk, who was elected last year on a progressive platform that included pledges to reverse the ban.
-South Africa's Economic Freedom Fighters leader, Julius Malema, is facing new corruption allegations following the 2018 election. The allegations come from Tshifhiwa Matodzi, former chair of VBS Mutual Bank. Malema and his deputy Floyd Shivambu were accused of benefited from R2B ($110M) stolen from the bank six years ago. The money was diverted through front companies to buy designer wear, fund lavish parties, and pay for his son's school fees at a high-end Johannesburg private school. The allegations could cause further political turmoil following the election.
THE NEW YORK TIMES
-President Biden defended his decision to continue running against escalating pressure from Democrats questioning his viability as a candidate, both publicly and privately. After the House minority leader visited the White House to share Democrats' concerns over his candidacy, the president held a tense virtual session with lawmakers in which he resisted a call to step aside. Representative Hakeem Jeffries, the House Democratic leader, has offered no hint of whether he shared his own conclusions with President Biden about whether he thinks the president should step aside.
-The controversy surrounding President Biden's bid for re-election has garnered significant attention from Americans. Over 23M people, a larger audience than this year's Academy Awards, tuned in to see how Biden handled his first live news conference since a poor performance at last month's debate with former President Donald J. Trump. The television audience accounted for roughly 45 percent of the 51.3 million who watched the debate, according to Nielsen. Biden's nearly hourlong appearance at the NATO summit in Washington was one of the most-watched telecasts of the year, outside of sporting events, aired across several major TV networks, with ABC, CBS, and NBC pre-empting regular entertainment programming. Millions more may have watched on digital news sites and other platforms.
-Donald J. Trump has been shifting his focus from his ideal running mate to a candidate who can help him get elected. For the past year, Trump has described his perfect running mate as someone who could easily take over as commander in chief if needed and help him draw a contrast to President Biden and Vice President Kamala Harris. However, as the curtain closes on his selection process, his public statements suggest that his thinking has shifted and he is giving more weight to political calculations. Trump has previously stated that he needs someone who can be a good president, which Biden doesn't have. This shift in focus on his running mate's ability to help him get elected is a significant shift in Trump's approach to the 2024 elections.
-Germany's immigration debate has been fueled by the recent killing of a police officer in Mannheim, Germany. The city has become known for its strict stance on deporting those who are denied asylum and commit violent crimes. The recent incident, which occurred in the leafy market square where a police officer was killed, has sparked calls for the expulsion of some refugees. The death and the fact that the man accused had his asylum claim denied years ago have been viewed as messaging mostly reserved for the far right.
-A cyberattack on AT&T exposed phone records of "nearly all" of its customers in 2022, but did not compromise the content of calls or texts. The breach included files containing records of calls and texts from over 100 million cellular customers, wireless network customers, and landline customers from May 2022 through October 2022, and records from January 2, 2023, for a small number of customers. AT&T said it was working with law enforcement to identify those involved and that at least one person had been arrested. The company has taken steps to close off the illegal access point and is working with law enforcement to identify those involved.
-After two weeks of intense battles between Israeli troops and Hamas militants in the Gaza City neighborhood of Shajaiye, residents and rescue workers combed through the wreckage on Friday. The landscape of flattened buildings strewed with dozens of bodies was left uninhabitable, according to residents who returned. Homes were all reduced to piles of rubble, bakeries and shops were destroyed, and even the streets had been dug up. Karam Hassan, a resident who had traveled back to Shajaiye to see the aftermath of the fighting, said that the scale of destruction is immense.
-US officials are optimistic about a deal to release Israeli hostages held in Gaza in return for a cease-fire, but people briefed on the talks say it will be days until it is clear whether a breakthrough has been achieved. People cautioned that previous hopes about an agreement had been dashed by both the Israeli prime minister, Benjamin Netanyahu, and Hamas. White House national security adviser, Jake Sullivan, reflected both the optimism and the caution, noting that many details still needed to be hammered out to secure a deal. He said that there are still miles to go before we close if we are able to close, and that it does not have to be far out in the distance if everyone comes in with the will to get it done.
THE NEW YORK POST
-Elon Musk has donated a significant amount to America PAC, a political group supporting former President Donald Trump in the 2024 election. The super PAC, formed in Austin, Texas, is required to disclose its list of donors on July 15. Musk has previously stated he will not directly donate to either Trump or Biden. America PAC, a cross-industry initiative established by the World Federation of Advertisers, aims to address harmful content on digital media platforms and its monetization via advertising. The group encourages visitors to register to vote and make a plan to vote early in person or by mail. The group has spent at least $6.6M on behalf of Trump, according to the New York Times.
-Vice President Kamala Harris is on the verge of becoming the most powerful woman globally, but most people are unaware of her background. With the $240M campaign funds raised by her and Joe Biden, she may soon lead the Democratic Party and run for the first black female President in November. Harris, who was once the District Attorney of San Francisco and Attorney General, is known for her pastel pantsuits, cackle, and word salads. Talk show host Drew Barrymore even considers her "Momala" of the country.