FINANCIAL TIMES
-US stocks rose on Friday, wiping out losses following Donald Trump's "liberation day" tariff announcement. Labor market data showed 177,000 jobs added in April, surpassing the 135,000 predicted by Bloomberg economists. The S&P 500 jumped 1.5%, marking the ninth consecutive daily gain for the S&P 500 since 2004. The S&P 500 had plunged as much as 15% in turbulent trading after Trump's announcement, triggering tumult across global financial markets. However, global equities have since largely recovered, thanks to signs of a possible thaw in trade tensions, including comments by China's commerce ministry that Washington expressed "a desire to engage in discussions" on trade.
-Canada's Prime Minister Mark Carney is set to meet with Donald Trump in Washington on Tuesday to revive a crucial trading relationship with the US. This is Carney's first foreign visit since winning the general election after a campaign overshadowed by Trump's taunts about Canada and tariffs on some of its exports. The two leaders have agreed to meet next week in the US capital. Carney said he had held a "very constructive call" with Trump and the focus will be on both immediate trade pressures and the broader future economic and security relationship between the two sovereign nations. King Charles will also deliver a speech to open the new parliament in Ottawa later this month, marking the first time in nearly 50 years that the monarch takes part in parliament's opening. Trump's mockery of Canada and threats to annex the country have sparked tensions between the two allies and trading partners.
-In 2022, Citigroup hired 27 analysts to work from its newly opened office in Malaga, Spain, to improve work-life balance and attract new talent. The office, which offered eight-hour days and free weekends, was criticized by rivals as a publicity stunt. However, Manolo Falcó, the bank's global co-head of investment banking, defended the initiative as not a gimmick. Less than three years later, the office closed and most staff moved to London. A few employees have been let go as the initiative aimed to break from traditional working conditions faced by junior analysts in investment banking. Citigroup selected 27 analysts from over 3,000 applicants when it launched its Málaga hub less than three years ago. Former employees and those involved in the project say the reality differed from the bank's pitch, with many working long hours in hopes of earning coveted roles in cities like London and Paris. The project was conceived by a trio of Citi executives, including Nacho Gutiérrez-Orrantia, María Díaz del Río, and Falcó. Each analyst was allocated to one of the industry teams in London, with Málaga potentially serving as a springboard to a job in the City if they performed well.
-Donald Trump has proposed a $163B budget cut to federal spending, aiming to eliminate programs deemed "woke," "wasteful," or "weaponized against ordinary working Americans." The budget, submitted to Congress, aims to cut non-defense spending by 22.6% to the lowest level since 2017, while increasing the defense budget. The plan would cut billions of dollars previously spent on foreign aid, healthcare, education, and the environment, codifying many of the cuts being implemented by the Department of Government Efficiency. Trump's budget wishlist comes as he intensifies his assault on the administrative state, with Elon Musk and Doge leading the effort to shrink the size of the federal government. However, many of the measures will face an uphill battle in Congress, where Trump's Republican Party holds a slim majority in the Senate and House of Representatives. The proposal outlines the president's priorities for discretionary spending, which does not include longer-term mandatory spending such as Social Security, Medicare, and interest paid on the federal debt.
-Two Congressional panels, John Moolenaar and Rick Scott, have urged the Securities and Exchange Commission (SEC) to delist Chinese groups, including Alibaba that they believe have military links that threaten US national security. The lawmakers wrote to SEC chair Paul Atkins to request action against 25 Chinese groups listed on American exchanges, including Baidu, JD.com, and Weibo. They claim these entities benefit from American investor capital while supporting military modernization and human rights violations. Despite their commercial appearance, the Chinese groups are "ultimately harnessed for nefarious state purposes" due to China's military-civil fusion program, which requires Chinese companies to share technology with the People's Liberation Army when ordered by Beijing. The push is part of the latest US effort to counter China and reduce its ability to use American capital, technology, and expertise to modernize its military. The US-China trade war has exacerbated tensions between the two countries.
-Cardinal Kevin Farrell, born in 1947, is the 'camerlengo', the custodian responsible for overseeing the Holy See's day-to-day operations during the interregnum between popes. He is the Church official responsible for organizing next week's conclave, the secretive election held to choose Francis's successor. Vatican insiders say he is the perfect person for the role, as he has always been a practical man with very good skills in administration and managing money. Farrell enacted centuries-old rituals intended to prevent attempted misuse of papal authority after Francis's death. The papal apartment was sealed to prevent looting, once common after popes died. Francis's fisherman signet ring was destroyed to thwart attempts to create fake documents with his seal. For the conclave, the camerlengo is now responsible for ensuring an "orderly election and its privacy", according to Universi Dominici Gregis — the apostolic constitution governing papal succession. Tasks range from ensuring the Sistine Chapel is swept for surveillance devices to vetting the cooks and housekeepers who will serve the cardinals — swearing them to perpetual secrecy about what they may see or overhear.
-Germany's new agriculture minister, Alois Rainer, has urged meat to be served at every school and kindergarten in Germany, as Friedrich Merz prepares to become chancellor. Rainer, a butcher by training, will replace Cem Özdemir as the top official in charge of food and farming after Merz takes office. He called for cheaper meat prices and inclusion of meat on menus for children, particularly in schools and kindergartens. Rainer's comments were met with enthusiasm by Markus Söder, the head of Rainer's Christian Social Union (CSU), who is a fan of the döner kebab and made Green-bashing a personal hobby during the campaign for February's nationwide elections.
-The US Department of Justice plans to force Google parent Alphabet to sell key parts of its digital advertising business, which was found to be an illegal monopoly. The DoJ told a federal judge that divestments of Google's ad exchange and publisher ad server businesses are the only way to break its dominance. The tech giant should also be required to share real-time ad bidding data with competitors. A trial date for the proposals and Google's rebuttals is set for September 22.
-The Israeli military is proposing a new system of aid distribution points in Gaza, manned by soldiers or private contractors, to address the extreme food shortages faced by 2M Palestinian civilians. The proposal would require Palestinians to travel to a humanitarian zone and pick up food parcels to carry back to their families. The military has ruled out distributing aid itself, but the system would allow Israel to screen Palestinians and decide which ones receive food. Implementing this system could remove some of the largest, most experienced, and deeply resourced relief agencies from the process of distributing aid to the besieged population. This is one of multiple options discussed by Israeli officials for allowing aid back into Gaza, a prospect that Prime Minister Benjamin Netanyahu's far-right coalition allies are opposed to.
NEW YORK TIMES
-The expansion of a tariff-free shipments loophole nearly a decade ago led to low-cost online retailers like Temu and Shein offering items directly from Chinese factories at significant discounts. This also led to billions of dollars in digital advertising, benefiting tech giants like Meta and Alphabet. In the last two years, only Amazon spent more on online advertising in the US than Temu or Shein. However, the shipping loophole's demise may end the advertising bonanza, as President Trump eliminated the exemption that allowed goods made in mainland China and Hong Kong valued at less than $800 to enter the US without import taxes. This means Temu and Shein are now subject to tariffs of up to 145% for importing Chinese goods.
-Temu, a Chinese e-commerce platform, has stopped shipping products from China directly to US customers. Instead, all US orders will be shipped from local warehouses in America. This change comes as the Trump administration closed a loophole that allowed products made in China and worth no more than $800 to enter the US without import fees. The exemption, which President Trump has called a "big scam" that hurt American small businesses, ended Friday. Temu said it would adjust its prices after Trump announced his intention to close the loophole, known as the de minimis exemption. Last week, the company started charging import charges for US customers who wanted to buy items from China, which in some cases more than doubled their purchase prices.
-President Trump has proposed a fundamental rewrite of the American tax code, suggesting that the US could stop taxing income under $200,000 and instead rely on revenue from his extensive tariffs. Trump stated that it may take a while before a complete tax cut is achieved, as the tariffs could be enough to cut all income tax. This idea was news to Republicans on Capitol Hill, who are already working on translating Trump's impulses for cutting taxes into law. Congressional Republicans are trying to incorporate several of Trump's previous tax proposals into the legislation, including not taxing tips, overtime pay, and Social Security benefits.
-President Trump has proposed the elimination of the National Endowment for the Arts and the National Endowment for the Humanities in his budget for the next fiscal year. The proposal, along with the Institute of Museum and Library Services, aligns with Trump's efforts to reduce the size of the federal government for accountability, waste reduction, and unnecessary governmental entities. The endowments, which were proposed in 2017 during Trump's first term, have remained alive due to bipartisan support in Congress, despite their budgets growing during the first Trump administration. The proposal aligns with Trump's efforts to decrease the size of the federal government.
-The US Army is planning a parade in Washington to celebrate its 250th anniversary on June 14, which coincides with President Trump's 79th birthday. The parade will feature 150 vehicles, 50 aircraft, and 6,600 soldiers. A fireworks display and a daylong festival will also be held, featuring equipment displays, musical performances, and a fitness competition. The Army is exploring ways to make the celebration even bigger, including more capability demonstrations, additional displays of equipment, and more community engagement. The celebration is in honor of the 250th anniversary of the Army's founding.
-Harvard University has resisted President Trump's threat to revoke its tax-exempt status, stating that there is no legal basis for such a move. Harvard has not explicitly pledged to challenge the revocation, which would impact the university's finances. However, a spokesperson for the university stated that there is no legal basis to rescind Harvard's tax-exempt status. The move would endanger the university's ability to carry out its educational mission, result in diminished financial aid for students, abandonment of critical medical research programs, and lost innovation opportunities. Trump declared on social media that the government would be "taking away Harvard's Tax Exempt Status" and defended the move as "what they deserve."
-Ghana's national cathedral, designed by celebrity architect David Adjaye, is a $400 million project that has been a major financial burden for the country, which is in "severe distress" due to the country's debt and the ongoing construction of the cathedral. The walls surrounding the cathedral are made of aging plywood and its spires are yellow construction cranes. The choir of frogs that frequently reverberates with singing during the half-finished foundations fill with rainwater. The new finance minister has stated that Ghana's economy is in "severe distress."
-Health and Human Services Secretary Robert F. Kennedy Jr. will direct federal health agencies to explore new treatments for the measles disease, including vitamins, as the US faces its largest single outbreak in 25 years. This decision is part of a series of actions that experts fear will undermine public confidence in vaccines as essential public health tools. The outbreak has swept through low vaccination rates in the Southwest, infecting hundreds and killing two young girls. Critics argue that Kennedy has focused too much on untested treatments and offered only muted support for the measles vaccine, which is 97% effective in preventing infection. The decision to focus more resources on potential treatments could have grave consequences at the center of the outbreak.
-Australia is set to vote in a general election, becoming the third major U.S. ally after Germany and Canada, amid a global economic and political landscape impacted by the second Trump administration. The two candidates, Prime Minister Anthony Albanese of the center-left Labor Party and opposition leader Peter Dutton of the conservative coalition, agree that the country faces a challenging environment. The country heavily relies on the U.S. for security and benefits from trade with China, which is exerting military ambitions closer to Australia's shores. However, the persistent cost-of-living crisis and worsening housing affordability have dampened the optimism that Australia is a recession-proof country with rich resources, high wages, and a stable government.
NEW YORK POST
-The Trump administration plans to cut staffing at the CIA and other intelligence agencies, including the National Security Agency, over several years. The CIA workforce will be reduced by 1,200, and thousands of positions at the NSA and other intelligence agencies will be cut. The reductions at the CIA include several hundred people who have already opted for early retirement. The rest of the cuts will be achieved partly through reduced hiring and would not likely necessitate layoffs. The CIA issued a statement saying CIA Director John Ratcliffe is working to align the agency with Trump's national security priorities. The CIA and NSA have already offered voluntary resignations to some employees. The CIA also plans to lay off an unknown number of recently hired employees. The new administration has also eliminated diversity, equity, and inclusion programs at intelligence agencies, though a judge has temporarily blocked efforts to fire 19 employees working on DEI programs who challenged their terminations.
-The State Department has approved the sale of F-16 fighter jet training, sustainment, and equipment to Ukraine in the first deal related to the recently signed mineral rights agreement. The $310.5M equipment and services will allow the US to earn credit in an investment fund established by the minerals deal, where profits will be split 50/50. Ukraine's purchase includes aircraft modifications, personnel training, spare parts, consumables, accessories, repair and return support, ground handling equipment, software delivery and support, publications and technical documentation, studies and surveys, US Government and contractor engineering, technical, and logistics support services, and other related elements of logistics and program support. The Defense Security Cooperation Agency (DSCA) stated that the proposed sale will support the US's foreign policy goals and national security objectives by improving the security of a partner country that is a force for political stability and economic progress in Europe.