FINANCIAL TIMES
-US stocks' record highs are obscuring the risks Donald Trump poses to the world's largest economy, according to big investors and senior bankers who have warned over growing "complacency" in the markets. Senior executives from Amundi and JPMorgan Chase have said buoyant markets are pricing in too much confidence that the US president will back down from policies most likely to threaten the country's financial stability. Vincent Mortier, chief investment officer of Amundi, referred to a narrative espoused on Wall Street that 'Trump always chickens out'. JPMorgan chief executive Jamie Dimon echoed this sentiment, noting that "unfortunately, I think there is complacency in the market." The S&P 500 share index has surged about 30% from an April low, rebounding since Trump paused the sweeping tariffs he announced during his "liberation day" event. Equities have generally shrugged off Trump's latest batch of tariff threats against large global economies.
-Trump has relaunched his trade war by imposing a 50% tariff on copper imports and considering a 200% levy on pharmaceutical goods. He also threatened Canada with 35% tariffs and put EU nations on notice to expect similar announcements. Trump's letters have set new levies between 25 and 40% for countries like Japan and South Korea, while granting the world another three-week extension to strike deals. These letters were sent to just over 20 countries, including South Africa, Thailand, Tunisia, and Bangladesh. Countries that do not receive letters will have to pay a higher blanket rate of 15-20%, up from 10%. However, the brinkmanship of Trump's threats has been undermined by the difficulty of reaching limited trade deals.
-A preliminary report into Air India flight 171's fatal crash last month has revealed that the engines briefly cut off seconds after take-off. The Air Accident Investigation Bureau reported that the aircraft reached the necessary speed to lift off, but fuel flow switches to the two engines transitioned from "run" to "cut-off" position. The pilots were asked why they cut off, and the engines lost thrust, leading one pilot to declare "mayday, mayday, mayday." Aviation experts have said it is difficult for pilots to inadvertently move fuel switches. The crash occurred on June 12, following the take-off of a Boeing Dreamliner 787-8 from Ahmedabad to London Gatwick airport. The crash killed 241 people on board and 29 on the ground.
-Elon Musk's xAI is set to raise $200B in a deal, a 10 times increase from its early last year value. The fundraising, which could begin next month, would be its third large share sale in less than two months. The deal would also increase xAI's valuation from $18B in its "series B" fundraising in May 2024. The company recently released the fourth model of its Grok chatbot, which posts on Musk's social media platform X, following its controversial post on X. The new fundraising is expected to target a valuation between $170-200B, with Saudi Arabia's sovereign wealth fund, PIF, expected to play a significant role. PIF holds an indirect interest in xAI through its stake in Kingdom Holdings Company, which has invested $800M in the company.
-The Pentagon is urging Japan and Australia to clarify their roles in the event of a war between the US and China over Taiwan. Elbridge Colby, under-secretary of defense for policy, has been pushing the issue in meetings with Japanese and Australian defense officials. The push is his latest attempt to convince US allies in the Indo-Pacific to enhance deterrence and prepare for a potential war over Taiwan. Colby's discussions with allies include efforts to persuade allies to raise defense spending amid rising concern about China's threat to Taiwan. The request for commitments related to a war over the island is a new demand from the US. However, the US does not provide a blank cheque guarantee to Taiwan.
-The US state department has announced plans to fire over 240 foreign service employees, including senior officials, following a Supreme Court decision allowing the Trump administration to proceed with job cuts across federal agencies. The move will affect 246 foreign service employees and 1,107 civil service employees with assignments in the US, according to the American Foreign Service Association (AFSA). Notifications are already being sent to affected employees, and they will be placed on administrative leave for a 120-day period before formally losing their jobs. The lay-offs are part of a broader reorganization of the state department, aiming to eliminate about 15% of its workforce.
-President Donald Trump has expressed frustration with Russian President Vladimir Putin for failing to negotiate an end to the three-year war he launched with Ukraine. Trump has pledged to provide additional weapons, including Patriot air defense systems, to Ukraine, and has expressed willingness to impose tougher sanctions against Moscow. He has also promised to issue a "major statement" on the war in Ukraine on Monday. Trump's ire represents a significant shift in tone from the White House, which previously blamed Ukrainian President Volodymyr Zelenskyy for the conflict. Trump's comments on the Russian drone attack in Ukraine highlight his frustration with Putin's inaction in talks to end the war.
-Brussels is proposing a levy on large European companies to generate new funding streams for the EU's €1T-plus common budget. The corporate resource for Europe, outlined in a draft European Commission proposal, will be unveiled next week but requires unanimous support from member states. The annual tax would apply to companies with turnover exceeding €50mn, regardless of their headquarters. A bracket system would require higher contributions from groups with the highest net revenues. Other revenue-raising measures include the EU taking a share of higher tobacco excise duties, charging for non-recycled electronic waste, and a handling fee for long-distance ecommerce packages, primarily targeting imports from China.
-Kraft Heinz, a packaged foods company, is considering a break-up a decade after Warren Buffett and 3G Capital merged the two brands. The decision comes after the company, known for Heinz Ketchup and Kraft Macaroni & Cheese, said it was considering several options to reverse its persistent underperformance. One plan being considered is spinning off much of its traditional grocery portfolio into a standalone company, while the remaining part, including Heinz condiments, Grey Poupon mustard, and a broader range of sauces, could be set for faster growth due to changing consumer tastes. Executives believe that two separate companies could ultimately be worth more than Kraft Heinz's $31B market value. No final decision has been made, and it is still possible the company would sell some assets and remain as a single entity.
-Police have raided the party's headquarters and office in an investigation into allegations it illegally financed recent campaigns by borrowing from supporters to evade legal caps on donations. This comes amid the controversy surrounding France's three-time presidential candidate, Emmanuel Macron, who was convicted of embezzling EU funds in March and sentenced to a five-year election ban. Le Pen maintains her innocence and is appealing the verdict, but it has weakened her leadership of the far-right party, as her right-hand man, party chief Jordan Bardella, will run in her place if she cannot. Le Pen's state of mind was revealed in an interview with conservative magazine Valeurs actuelles magazine.
NEW YORK TIMES
-Trump's supporters claim he is a top dealmaker, but for now, more trading partners have received stiff tariffs than trade deals. Even when Trump strikes trade deals, double-digit tariffs are often left in place, with more levies on foreign products on the way. The belief, promoted by Trump himself, was that he was using his tariffs as a lever to crack open foreign markets and deliver dozens of deals that would increase U.S. exports and help American businesses flourish abroad. However, three months later, that optimism is being replaced by doubts that Trump's goal is ever to strike the kind of trade deals that would open up markets.
-Kerrville, a city of 25,000, has become a hub for search and recovery efforts along the Guadalupe River. While some parts of the city have largely escaped the worst of the flood's damage, the city water plant has sustained significant damage, causing residents to rely on well water for the next few weeks. Dozens of houses were destroyed in the streets nearest to the river. Police officers evacuated 200 people from homes and vehicles. Many people remain missing from at least one campground at the city's edge. In one harrowing rescue, a police officer wrapped a garden hose around his waist to serve as an anchor, while two other officers waded into the surging water to rescue two trapped people.
-The FBI is using polygraphs to test officials' loyalty, with some senior officials being asked if they said anything negative about the director, Kash Patel. This is part of the FBI's broader crackdown on news leaks, reflecting the director's awareness of how he is publicly portrayed. Since taking office, the bureau has significantly increased the use of the lie-detector test, subjecting personnel to questions as specific as whether they have cast aspersions on Patel himself. The number of officials asked to take a polygraph is in the dozens, though it is unclear how many have specifically been asked about Patel. Former bureau officials say the moves are politically charged and highly inappropriate, underscoring an alarming quest for fealty at the FBI, where there is little tolerance for dissent. Disparaging Patel or his deputy, Dan Bongino, could cost people their jobs.
--President Trump and his aides have shifted their focus from recommending the elimination of the Federal Emergency Management Agency (FEMA) to overhauling it, despite previous statements that the agency was bloated and ineffective. As the administration grapples with the deadly flooding in Texas, they are now focusing on the need for the federal government to effectively respond to disasters. The director of the Office of Management and Budget, Russell T. Vought, stated that the president will continue to ask tough questions from all of his agencies. This has added confusion about the future of FEMA, which is struggling with the loss of top officials, including Cameron Hamilton, who criticized the agency's importance in communities during times of need.
-Texas officials are facing scrutiny for refusing to fund early warning systems for flash floods, a common issue in areas with frequent, intense rainfall. The floods that killed at least 121 people, including 36 children, were a result of inadequate forecasting and communication. Experts argue that accurate forecasting alone is not enough to prevent calamity, and both rich and poor countries have struggled with funding for systems that either fail or create false alarms, eroding public confidence.
-A federal judge in California has halted the Trump administration from making indiscriminate immigration arrests in the Los Angeles area and from denying detainees the right to legal counsel. The temporary restraining orders, issued by Judge Maame E. Frimpong, rebuke tactics used by federal agents during immigration raids. The orders directed agents to stop racial profiling and mandated the federal government to ensure detainees have access to legal counsel. The judge argued that the federal government would have the court believe none of these tactics are happening.
-Measles cases in the US reached a record high, prompting Democrat Senator Chuck Schumer to call on health secretary Robert F. Kennedy Jr. to declare the virus a public health emergency. The minority leader argued this was necessary to control the rapid resurgence of the highly contagious virus. With 1,288 cases in 2025, the majority of cases have been linked to the Southwest outbreak, which began in a Mennonite community in West Texas and spread to Oklahoma and New Mexico. There are no immediate plans to declare a public health emergency.
-Google has acquired the leaders of Windsurf, a start-up that developed an AI-powered computer programming tool, in a $2.4B deal. The move is part of tech companies' battle to acquire AI talent, deepening Google's AI engineering bench and securing a point against OpenAI, one of its biggest challengers. OpenAI was in talks to acquire Windsurf in a $3 billion deal, but talks broke down due to concerns about information sharing with Microsoft. Under Google's agreement, Windsurf's CEO, Varun Mohan, and co-founder Douglas Chen will join Google DeepMind, along with several research and development employees.
NEW YORK POST
-President Trump has granted Immigration and Customs Enforcement (ICE) agents "Total Authorization" to arrest violent protesters following a California cannabis farm raid that resulted in rocks being thrown at federal law enforcement vehicles. Trump praised the officers for their bravery and ordered Secretary of Homeland Security and Border Czar to instruct all ICE, Homeland Security, or other law enforcement officers to stop their cars and arrest the protesters using whatever means is necessary. The incident shows disrespect for law and order.
-FBI Deputy Director Dan Bongino has reportedly resigned after a heated exchange with Attorney General Pam Bondi over the Trump administration's handling of the Jeffrey Epstein investigation. The heated exchange led to Bongino taking a personal day and considering resigning after fewer than four months in his job. Both parties have publicly stated that an internal review of the Epstein file yielded no smoking-gun information about his death, high-powered associates, or sickening crimes. A Justice Department official said that FBI Director Kash Patel might follow Bongino out the door, as both have fought for transparency.