This text is an on-site model of our FirstFT e-newsletter. Subscribers can signal as much as our Asia, Europe/Africa or Americas version to get the e-newsletter delivered each weekday morning. Discover all of our newsletters here
Good morning and welcome again to FirstFT Asia. On immediately’s agenda:
Donald Trump has threatened to extend levies on Japan and forged doubt that the US would attain a take care of its Asian ally, as he escalated his commerce rhetoric days earlier than his pause on some steep tariffs is ready to run out.
What occurred: Talking to reporters yesterday, Trump mentioned he would impose new levies on international locations that did not agree a commerce deal by July 9, when the “reciprocal” tariffs unleashed in April are set to renew. He singled out Tokyo, saying: “We’ve handled Japan. I’m unsure we’re going to make a deal. I doubt it.”
Rice stand-off: Trump’s feedback got here after commerce talks between the US and Japan stalled amid a row over rice. The US president accused Tokyo of being “spoiled” and refusing to commit to purchasing extra American rice or to permit US-manufactured vehicles into its market. Japan’s chief cupboard secretary Yoshimasa Hayashi mentioned yesterday that Tokyo was “not occupied with doing something that might sacrifice the farm sector”. Hayashi’s feedback got here as the most recent spherical of commerce negotiations in Washington ended with out clear progress.
Learn extra commerce protection under, as international locations race to signal agreements with Washington by subsequent week’s deadline.
-
India: New Delhi is on monitor to seal an interim trade agreement with Washington as quickly as this week to avert Trump’s “liberation day” tariffs.
-
EU: European capitals are insisting the US reduces its tariffs on the EU instantly as a part of any framework deal earlier than the looming deadline on July 9.
-
US narrows focus: Trump’s high commerce officers are scaling back their ambitions for complete reciprocal offers with overseas international locations.
Right here’s what else we’re retaining tabs on immediately:
-
Financial information: South Korea publishes June inflation figures. Singapore and Australia report PMI information for the month.
-
China-EU relations: Chinese language International Minister Wang Yi meets European Council President António Costa in Brussels.
5 extra high tales
1. Thailand’s constitutional courtroom has suspended Prime Minister Paetongtarn Shinawatra following a leaked cellphone name with former Cambodian chief Hun Sen, during which she allegedly disparaged the highly effective Thai army whereas discussing a border dispute. The political turmoil threatens a truce between the highly effective Shinawatra household and Thailand’s conservative institution. Read the full story.
2. Trump’s landmark tax and spending laws moved a step nearer to changing into regulation yesterday after the US Senate ended days of haggling and narrowly handed the so-called massive, lovely invoice. The invoice’s passage via Congress’s higher chamber now leaves its destiny within the fingers of the Home of Representatives, where it could still face considerable opposition.
-
What’s within the invoice?: The laws would minimize taxes by $4.5tn over 10 years whereas slashing welfare spending and clear power subsidies.
-
Opinion: Trump’s “massive, lovely invoice” is an act of self-harm, writes Edward Luce.
3. Taiwan’s greenback jumped greater than 2 per cent in risky buying and selling yesterday, because the nation’s huge life insurance coverage and export sectors rushed to include the fallout from a weak US forex. The New Taiwan greenback made its biggest single-day gain since a fast appreciation initially of Might that uncovered Taiwanese life insurers to large losses on their US property.
4. Liquidators who’re making an attempt to recoup billions of {dollars} siphoned initially from Malaysia’s sovereign wealth fund are looking for greater than $2.7bn from Customary Chartered, in a lawsuit filed in opposition to the UK-based financial institution over its alleged function within the scandal. The swimsuit represents the most recent try to recover money taken from 1MDB in a decade-long hunt that has concerned a number of of the world’s largest banks.
5. Jay Powell mentioned a July rate of interest minimize was not “off the desk” for the US Federal Reserve, in an obvious softening of his place that the central financial institution ought to wait till the autumn to begin decreasing borrowing prices. The Fed chair has been under relentless pressure from Trump to slash charges.
Visible story
From Norway’s Arctic area to Poland’s border with Belarus, Nato allies are working collectively to foretell what a Russian assault may appear like — and the way the alliance would reply to at least one. Discover how Nato nations are fortifying the japanese frontier in this visual story.
We’re additionally studying and listening to . . .
-
Chinese language financial system: Beijing may use this second of stability to rally folks round wanted reforms that tackle deep structural issues, writes Eswar Prasad.
-
Tech Tonic 🎧: Meta chief govt Mark Zuckerberg has undergone a metamorphosis, each bodily and political. But is this all an act?
-
Ghosts of Brexit: Switzerland’s deal to maintain entry to the EU’s single market consists of all the identical thorny points which have bedevilled the UK-EU relationship.
Chart of the day
The extraordinary battle to poach high synthetic intelligence researchers and engineers from rivals has spurred a fast escalation in wages, as tech teams equivalent to Meta and OpenAI race to realize the aggressive edge. Prime tech workers are being lured with far higher pay than laptop engineers with out AI expertise, information exhibits.
Take a break from the information
As a part of its Wimbledon particular, FT Globetrotter sits down with the All England Garden Tennis Membership’s head gardener to search out out what it takes to get the courts immaculately green.
