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Right now’s agenda: Lockheed’s UK pitch; Fed cuts US outlook; China’s drone push; Leo Lewis on Trump’s “stick-holder capitalism”; and is AGI one other Silicon Valley buzzword?
Good morning. We’ll begin with the most recent on the Center East warfare and its world fallout.
The scenario now: Donald Trump has made his most express feedback but about doable US navy motion towards Iran, saying: “I may do it. I may not do it.” The president additionally stated subsequent week or “possibly lower than per week” could be “very massive”, hinting at a doable timeframe for his resolution. The nuclear-powered USS Nimitz, the US Navy’s lead ship in its class of plane carriers, is shifting to join other American military assets within the area. Trump stated Tehran wished to barter, however Iran has denied his account.
World response: UK Prime Minister Sir Keir Starmer has put the UK cabinet on alert for potential US motion, along with his workforce weighing the way to reply ought to Tehran threaten British property within the Center East. They mentioned whether or not Trump may search to strike Iran’s nuclear services from a joint US-UK air base at Diego Garcia within the Indian Ocean, which might draw Britain nearer to the battle. In the meantime, Russian President Vladimir Putin stated he has had discussions with the US, Iran and Israel however stated the answer was up to the warring parties.
Affect on vitality: Oil prices have steadied after final week’s surge, with crude exports from the Center East largely unaffected. However costs to constitution massive oil tankers sailing through the Strait of Hormuz have greater than doubled since Israel struck Iran. Roughly one-third of the world’s seaborne oil provide flows by way of the slender waterway separating Iran from the Gulf States. Demand for alternative energy sources, reminiscent of palm or soyabean oil, has additionally elevated in current days.
Follow our live blog for the latest updates.
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Iranian casualties: Israel’s missile strikes have eradicated Iran’s high navy leaders and nuclear specialists. Here are the key figures who have been killed.
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Secret warfare: Hacked telephones, deep-cover brokers and miniaturised weapons methods have been a part of the covert campaign that preceded Israel’s assault on Iran.
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‘Allow them to kill us’: Thousands and thousands of Iranians are refusing to leave Tehran regardless of Israel’s lethal strikes and warnings to evacuate.
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Steve Bannon: Trump’s former adviser has warned that US involvement in one other warfare within the Center East would “tear the country apart”.
Right here’s what else we’re retaining tabs on in the present day:
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UK rates of interest: The Financial institution of England is anticipated to maintain borrowing prices unchanged, with UK inflation well above its official goal.
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Chatham Home: The think-tank holds its flagship convention in London, with former MI6 chief Sir John Sawers and the FT’s Martin Wolf anticipated to talk.
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TikTok ban: Trump is anticipated to extend today’s deadline for Chinese language proprietor ByteDance to promote its stake or face a ban.
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US markets closed: The nation marks the top of slavery after the civil warfare with the Juneteenth vacation.
5 extra high tales
1. Unique: Lockheed Martin has approached the British authorities to supply assist in constructing a brand new missile defence system for the nation. The US defence group stated it could be blissful to associate with whomever “the UK wished us to work with”. Read the full story.
2. Unique: Microsoft is ready to stroll away from talks with OpenAI over the way forward for its multibillion-dollar alliance, because the ChatGPT maker seeks to transform itself right into a for-profit firm. The 2 sides stay unable to agree on vital points such because the size of the software group’s future stake in the start-up.
3. The Federal Reserve minimize its outlook for the US economic system yesterday, with policymakers cut up on whether or not they would have the ability to cut back rates of interest in any respect this 12 months as Trump’s tariffs carry dangers of upper inflation. Hours earlier than the choice, the US president referred to as Fed chair Jay Powell “silly” and requested whether or not he may “appoint myself” to the central bank.
4. Unique: Thames Water’s collectors are demanding exemption from key UK environmental legal guidelines, in response to paperwork seen by the FT. The lenders, who’re offering a £5bn backup rescue of Britain’s largest water firm, also want fines amounting to millions of pounds removed.
5. The US clear vitality sector is going through a wave of bankruptcies as Congress weighs a spending invoice that will intestine clear vitality tax credit which have saved the trade afloat. Since retaking Congress and the White Home, Republicans have moved swiftly to dismantle Biden-era investment in renewable energy sources.
The Massive Learn
Synthetic basic intelligence has been tipped as the following massive breakthrough out of Silicon Valley, with proponents from OpenAI to Google DeepMind predicting it may turbocharge the economic system, treatment illnesses and “elevate humanity”. However is AGI a scientific aim — or simply a marketing buzzword?
We’re additionally studying . . .
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Chinese language drones: Beijing has pushed the nation to provide tens of millions of unmanned plane. Now, it needs the “low-altitude economy” to develop into a driver of progress.
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Julius Baer: Stefan Bollinger, a former Goldman Sachs banker, takes on the Swiss wealth supervisor’s troubled legacy as its new chief government.
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‘Stick-holder capitalism’: Nippon Metal’s $15bn deal for US Metal is the primary massive cross-border deal below Trump’s new genre of capitalism, writes Leo Lewis.
Chart of the day
Universities in Asia had a robust exhibiting within the newest QS world rankings, whereas the vast majority of UK establishments dropped down the checklist for a second straight 12 months. Here’s how individual institutions performed.
Take a break from the information
Now could be the time for a enjoyable, no-nonsense, beach-ready watch. Louis Cheslaw opinions reasonably priced and waterproof timepieces for the summer.
