FT News Briefing

Wall Street reacts to Donald Trump's latest criticisms of the Federal Reserve. The passing of Pope Francis marks a significant moment for the Catholic Church, prompting discussions on his legacy and the future of the papacy. Meanwhile, Europe's automotive industry is shifting strategies as it learns from China's electric vehicle expertise, facing both opportunities for collaboration and geopolitical challenges. Business leaders show strong support for transitioning to renewable energy despite recent regulatory uncertainties.

Lauren Indvik, the FT's fashion editor, delves into the rocky landscape of the luxury goods industry amid current economic turbulence. She highlights how Trump’s trade policies and tariffs have disrupted growth, making 2025 ambitions look bleak. The conversation reveals divergent financial fates among brands like LVMH and Kering, and she discusses shifts in consumer behavior, particularly in China. Additionally, the podcast touches on brands reevaluating their supply chains, moving away from China to adapt to new challenges.

Sanam Vakil, Director of the Middle East program at Chatham House, shares her insights on Iran's nuclear negotiations and their impact on regional stability. She discusses how the evolving dynamics involve major players like the U.S., Israel, and emerging alliances with Russia and China. The conversation touches on the urgent need for a new nuclear deal and the tensions surrounding military options. Additionally, shifting relationships between Iran and Gulf states are explored, shedding light on the future of Middle Eastern geopolitics.

Trade tensions escalate as China halts U.S. liquefied natural gas imports, complicating international energy relations. Japan grapples with tariff negotiations and seeks clarity amidst U.S. political maneuvers. Meanwhile, astronomers present groundbreaking evidence of potential life on exoplanet K2 18b, revealing its oceanic features and organic molecules. The quest for extraterrestrial life intensifies as researchers draw parallels to Earth's history, sparking optimism for discoveries in the near future.

Federal Reserve chair Jay Powell highlights how U.S. tariffs threaten inflation and employment goals. Meanwhile, UK inflation unexpectedly dips to 2.6%. Emerging markets are showcasing surprising resilience amid market volatility, presenting intriguing investment opportunities. The podcast also discusses the impact of price fluctuations and ongoing challenges within the chip industry, particularly for key players like NVIDIA and ASML, shedding light on the broader implications for the AI sector and stock market dynamics.

Nvidia faces a $5.5 billion hit due to U.S. restrictions on AI chip exports to China. Meanwhile, the junk bond market is in turmoil, impacting financing for riskier firms. In India, the middle class grapples with a rising debt crisis, as household debt balloons from 35% to 43% of GDP since 2020. Late payments on personal loans are rising, threatening overall economic growth. This financial squeeze highlights the alarming trend of increasing borrowing costs and aggressive debt collection tactics.

Brussels is considering options for European firms to exit long-term Russian gas contracts, highlighting geopolitical tensions. Meanwhile, Argentina has secured a significant $20 billion deal with the IMF to address pressing financial challenges. This agreement involves lifting currency controls, raising hopes for economic stabilization, despite the looming threat of inflation and upcoming elections. Additionally, China's President Xi Jinping is actively promoting Beijing's business outlook in Southeast Asia, showcasing shifting international trade dynamics.

The U.S. faces temporary tariff exemptions on tech, causing uncertainty for consumers and businesses alike. Despite economic challenges, major banks like JPMorgan report strong earnings, though rising credit defaults spark concern. Tensions mount as the U.K. and EU inch closer to a defense pact while American academics contemplate leaving the country due to escalating pressures from the Trump administration. This mix of financial resilience and academic strife paints a complex picture of the current socio-economic landscape.

Chris Giles, an economics commentator for the Financial Times, and Claire Jones, the incoming U.S. economics editor, tackle the Federal Reserve’s tightrope walk amidst President Trump's trade wars. They dissect how tariffs create inflationary pressures even as consumer prices dropped. The discussion focuses on Chair Jay Powell’s tough choices: prioritize economic growth or keep inflation in check. They also highlight the broader impacts of these decisions on everyday Americans and the Fed's cautious approach to interventions.

The latest news reveals U.S. inflation fell surprisingly to 2.4%, yet markets remain shaky. Investors grapple with the impact of tariffs and a declining dollar, leading to a sell-off in Treasuries. Meanwhile, Indonesia's new sovereign wealth fund aims for transparency akin to a public company, navigating domestic investment strategies amid market uncertainty. Plus, a cultural exchange is on the horizon as 'Saturday Night Live' makes its way to the U.K., showcasing the power of comedy across borders.