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Today’s agenda: Trump’s tariff reprieve; UK football stadiums; Gaza’s last hospitals; and UK high-cost degrees
Good morning and welcome back to FirstFT. We begin with the US, where Wall Street is warning that a little-publicised provision in Donald Trump’s budget bill that allows the government to raise taxes on foreign investments in the US could upend markets and hit American industry.
What is the provision? Section 899 of the bill that the House of Representatives passed last week would allow the US to impose additional taxes on companies and investors from countries deemed to have punitive tax policies. It would affect dividends, interest income on US stocks and bonds and sovereign wealth funds’ holdings.
Why it matters: Analysts and executives say the measure could deter foreign investment, add pressure to the dollar, undermine competitiveness, weaken demand for US assets and raise borrowing costs. This is especially troubling, they say, given fragile investor confidence and America’s growing dependence on overseas capital to finance its debt. Here’s more on why Trump’s budget bill is rattling Wall Street.
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Gillian Tett: Trump’s “big, beautiful bill” comes with a ticking time bomb.
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Unhedged 🎧: Katie Martin and Robert Armstrong talk about the president’s reaction to the nasty Taco question (the Trump Always Chickens Out one).
Here’s what else I’m keeping tabs on today and over the weekend:
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Shangri-La dialogue: US defence secretary Pete Hegseth and French President Emmanuel Macron are due to speak at a global security gathering that starts today at the hotel in Singapore.
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Economic data: Germany reports its May consumer price index and harmonised index of consumer prices inflation rate today, while Turkey forecasts first-quarter GDP.
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Oil: Opec+ meets today to review market conditions, conformity and compensation. The cartel will also decide July production levels.
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Anglo American: The demerger of the group’s platinum unit is expected to take effect today.
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Poland: Voters decide the country’s next president in Sunday’s run-off.
How well did you keep up with the news this week? Take our quiz.
Five more top stories
1. A US federal appeals court gave Trump’s global tariff plans a temporary reprieve, pausing a ruling that had found his “liberation day” levies to be illegal. The decision leaves the longer-term fate of the scheme in the balance, and allows the US to continue collecting levies while the stay is in place.
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Cross-border ‘break-up’: Trade tensions are straining close ties between Detroit, Michigan, and Windsor, Ontario, neighbouring sister cities divided by a river.
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Trump’s legal blow: How the courts reined in tariffs and his grand plan to remake global commerce.
2. Bank of England governor Andrew Bailey has called on the UK to seek closer alignment with the EU to “minimise the negative effects” of Brexit. He made the case for non-tariff barriers to be reduced, particularly in the financial services industry, saying that less red tape would boost trade and economic growth. Here’s more on the policymaker’s comments.
3. Trump told the head of the Federal Reserve that he was making a “mistake” by not loosening US monetary policy, in their first meeting of the US president’s second term. Jay Powell stressed afterwards that decisions would be based solely on economic data and “careful, objective, and non-political analysis”.
4. Exclusive: Global commodities trader Archer Daniels Midland is exploiting a UK regulatory loophole to claim a double subsidy on biofuels production, as a surge in imports threatens to wipe out the domestic ethanol industry, say its British competitors. The Chicago-based company’s rivals say the trader is undermining green targets and may have earned up to £100mn in UK revenue last year through the scheme.
5. Exclusive: China’s biggest technology groups have begun a shift to homegrown chips for artificial intelligence development, as they contend with a dwindling supply of Nvidia processors and tighter US export controls. Read more on how the tech groups are adapting.
How can science help achieve global food security, especially in vulnerable regions such as Africa? Join FT agriculture correspondent Susannah Savage and a panel of experts for a live webinar and Q&A on Tuesday. Register here.
The Big Read
Several English football clubs are trying to convince the UK government that new stadiums could help regenerate some big cities and are seeking government funding to make the projects work. But ministers will need to decide whether it makes sense to spend large amounts of public money on schemes backed by wealthy private investors. Read the full story.
We’re also reading . . .
Chart of the day
UK students face “fierce competition” for places on science and engineering degree courses, as financial strains prevent universities from expanding expensive courses despite rising demand. Applications for high-cost degrees have grown nearly three times faster than enrolments since 2019, the first available year of data.
Take a break from the news
Once too snooty for football, Paris is now home to billionaire-backed clubs and its biggest talent pool. Simon Kuper explores how the French capital fell for the sport.
