Today’s agenda: Trump Sours on Japan Deal; attacks on oil tankers; Republicans ‘Big, beautiful’ curse; Labor -Rebellie; and Michael Strain on Zohran Mamdani and billionaires
Good morning. The sale of risky European business debt last month increased to around € 23 billion according to JPMorgan data, their highest level ever.
Why does this happen? High-efficiency, or with junk rated, benefit from a decrease in loan costs as a result of a greater demand from investors, who benefit from a capital flight from the American markets. The proceeds go reversed to prices. Many investors shift allocations from the US because of the whimsical trade policy and the rising government debt of President Donald Trump. Despite a strong rebound on the US stock market in the second quarter, a continuous step away from dollar bonds has brought the currency to its weakest start of the year.
What this means: Even companies that struggled earlier to tap into the bond market now have access, given the “huge amount of cash,” said a JPMorgan analyst. Publishing expenses with troubled past, or those who offer complex and disadvantaged instruments, such as payment in kind bonds-where interest can be rolled up in the client who must be repaid on the due date also eagerly welcomed by investors. “Managers are desperate to invest,” said a livered financial banker.
This is what we keep an eye on today:
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Economic data: The EU publishes work figures for May.
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China-EU tires: Chinese Foreign Minister Wang Yi meets the European Council President António Costa in Brussels.
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Football: The Euro 2025 women’s championship starts with Iceland, which plays Finland in Thun, Switzerland.
Five more top stories
1. Trump has threatened to increase taxes on Japan And newly imposing new countries that do not agree with a trade agreement when his ‘reciprocal’ rates have been set to resume. Trump choosing the US Asian ally, said: “I’m not sure if we’re going to close a deal. I doubt it.”
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EU trade: European capitals have hardened their position and insisting that the US immediately lowered its rates on the block as part of each first phase agreement.
2. Deutsche Bank has set a steeper than expected capital hit from Basel IV rules That changes how banks calculate the risk. Under the new framework, which will be fully implemented in 2033, the risk -weighted assets of the German lender can increase by a third. Read the full story.
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Wall Street: Investors picked the benefits of the Losser Bank supervision, because the largest American banks announced a stream of shareholder payments yesterday.
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The SVB -Opening: A group of technical billionaires, including Peter Thiel, supports the launch of a new lender who is planning to serve start-ups.
3. Exclusive: a series of mysterious limpetic mine attacks on oil tankers has shaken the shipping world, which gives rise to speculation that the explosions were part of a sabotage campaign supported by the State. All ships called to Russian ports within a few weeks after the attacks, so that some security experts were asked to suggest that Ukraine had a hand in the explosions.
4. Exclusive: the EU blocks the attempts of Great Britain to become a member of a Pan-European trading area, According to officials on both sides. The United Kingdom announced that it considered whether he participated in the Pan-Euro-Ericnitranean Convention as part of his new trade strategy published last week, with the argument that it could help to increase the export of the country’s flags.
5. Exclusive: Matthew Freud looks at options to sell his PR -Consultancy of the same name After 40 years as one of the best Spin-Doktoren in London. People with knowledge of the details said Freud, whose customers have recorded Sir Jony Ive and Sir Lewis Hamilton, hired boutique investment bank Robey Warshaw to start a process to find a buyer.
New in -depth
Trump has approved his ‘big, beautiful bill’ by the US Senate. But the legislation is still confronted with obstacles, including the house, where several of his fellow republicans have threatened to vote against it. But even if the president can get them in line, he is confronted with a big task in defending the legislation for an American audience that seems to acidify it.
We read too. . .
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Qantas: The Australian airline is investigating whether a hacking group that focused on Marks and Spencer was behind an infringement that influenced 6mn customers.
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Labor rebels: Sir Keir Starmer’s plans to save £ 5 billion are now in cracks after the prime minister was forced to issue his flagship welfare account.
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Zohran Mamdani: The Democratic Socialist who walks to become the mayor of New York City is uneven – there should of course be billionaires, writes the Michael Strain of the American Enterprise Institute.
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NHS: British grow less fond of their troubled health care system. Will the 10-year plan of Labor change my mind?
Will be a member of Stephen Bush, Miranda Green and Robert Shrimsley tomorrow for a live Q&A on the following movements of Labor after a turbulent 12 months. Serve your questions here.
Graph of the day
Drinking has become more often with Gen Z while baby boomers are reducing their alcohol consumption, according to an extensive study that challenges the story that abstinence stimulates the decline of industry among young people.
Take a break of the news
Whether you look after a long, soft session of sun-drenched or are looking for the nearest location to catch a nail biting tie-break, here are some of the best places to view Wimbledon in London.
