FT News Briefing

Investors express concerns about rising bond yields in Germany impacting defense spending across the EU. Meanwhile, CoreWeave's IPO, the largest in 18 months, experiences a lukewarm market response due to worries over its ties to NVIDIA and debt levels. The podcast also sheds light on a cash crisis in Gaza, where a black market has emerged amidst high transaction fees. Lastly, it touches on a successful rocket launch attempt from a European startup, illustrating the challenges and achievements in the region's space endeavors.

James Politi, Washington Bureau Chief for the Financial Times, and Guy Chazan, U.S. politics and society correspondent, dive into the potential consequences of proposed Medicaid cuts amid budget negotiations. They discuss how these cuts could alienate MAGA supporters who rely on this essential service. With insights on the fracturing Republican unity, they highlight the looming showdown between fiscal conservatives and those advocating for social welfare. Personal stories from affected voters illustrate the real-world stakes of political decisions.

US President Donald Trump’s auto tariffs hit carmaker shares and Chinese financial authorities have told some companies they can start launching mainland initial public offerings. Plus, protesters in Turkey are worried about the future of their democracy. Mentioned in this podcast:China opens path to revival in A-share listingsDonald Trump’s tariffs throw car industry into turmoilTurkish protesters rise up against Recep Tayyip ErdoğanThe FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian, Ethan Plotkin, Lulu Smyth, and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Katie McMurran, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.

The U.S. is set to impose a hefty 25% tariff on foreign-made autos, shaking up the automotive industry. Meanwhile, Piyush Gupta is stepping down as CEO of Singapore’s DBS Bank, after a remarkable 16-year tenure. UK inflation has unexpectedly dropped to 2.8%, providing a glimmer of hope in economic challenges. On a high note, Rolls-Royce has experienced a substantial rise in share prices, largely thanks to strategic leadership from its new CEO, who has implemented transformative changes to revitalize the company.

Beijing's new environmental restrictions threaten Nvidia's sales to Chinese firms. The UK economy faces stagnant growth and borrowing challenges as Chancellor Rachel Reeves prepares to outline fiscal strategies. Meanwhile, Shell is slashing costs to compete with US rivals. Interestingly, individual investors have invested nearly $70 billion in US stocks this year, defying the cautious moves of professional money managers. This contrast highlights the gaps in market sentiment between retail optimism and institutional skepticism.

China is mulling a massive subsidy plan to boost its sluggish economy, while SAP has surged to become Europe’s top tech giant, eclipsing Novo Nordisk. BYD has also celebrated a remarkable milestone with record sales exceeding $100 billion. Meanwhile, Elon Musk’s Starlink is poised for a dominant year, but his ties to Donald Trump are turning problematic, complicating its future. The intersection of technology, geopolitics, and personal controversies paints a challenging landscape for Musk's ventures.

Canada's prime minister has called for snap elections amid political turmoil. European investors are feeling the heat from a slump in U.S. equities, compounded by a declining dollar. Carmakers are racing to deliver vehicles before impending tariffs hit. In the sports world, top tennis players are suing governing bodies, alleging unfair treatment and a cartel-like system that limits their earnings. The conversation touches on shifting dynamics in global trade and the evolving landscape of athlete rights.

Rana Foroohar, a global business columnist for the Financial Times and author of the Swamp Notes newsletter, shares her insights on the Democratic Party's internal conflicts. She discusses the party's struggle to define a cohesive strategy against Donald Trump, highlighting tensions between centrists and populists. Foroohar emphasizes the urgency for Democrats to enhance their public visibility and develop proactive messaging. Additionally, she explores how ongoing tensions between the judiciary and the executive could provide an opportunity for Democrats to address economic stability concerns.

European countries are stepping up their defense commitments as they reassess roles within NATO. The UK is engaged in crucial trade talks with the US to sidestep looming tariffs, balancing international relationships post-Brexit. Key discussions also focus on the diverging monetary policies of major central banks, questioning the US's role on the global stage. In a notable twist, Kirstie Coventry becomes the new president of the International Olympic Committee, marking a significant shift in sports governance.

The Federal Reserve remains cautious as it adjusts growth forecasts amid economic challenges. Exciting developments are on the horizon for tech startups eyeing public listings, despite a shaky IPO market. In Turkey, political tensions rise as authorities detain a key challenger to Erdoğan. Meanwhile, the International Olympic Committee faces scrutiny over its outdated business model, prompting calls for strategic reforms to adapt to shifting media landscapes and ensure its future viability.