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Good morning and welcome again to FirstFT Asia. On at this time’s agenda:
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US and Vietnam strike a commerce deal
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The Dalai Lama defies Beijing
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Is Trump’s “large, lovely invoice” a political curse?
Donald Trump stated the US had struck a commerce settlement with Vietnam in a deal that will decrease Washington’s “reciprocal tariff” on exports from the Asian nation to twenty per cent. Right here’s what it is advisable to know.
The deal: The brand new tariff stage represents a greater than halving of the 46 per cent levy Trump initially imposed on Vietnam throughout his “liberation day” tariff blitz on April 2. However it’s increased than the ten per cent fee it was lowered to as commerce talks occurred. The US can even cost Vietnam a 40 per cent tariff on “trans-shipping” as Washington seeks to crack down on companies sending merchandise made in China by way of different international locations to keep away from excessive levies on Chinese language items.
Go deeper: Vietnam’s exports to the US have risen in recent times as producers have moved manufacturing out of China to keep away from US tariffs, with the south-east Asian nation internet hosting the likes of Apple, Samsung and Nike. Trans-shipment had turn into a important challenge in Hanoi’s negotiations with Washington, because the Trump administration accused Vietnam of being a conduit for Chinese language exporters.
Read more about the deal, which makes Hanoi one of many few capitals to achieve a commerce settlement with Washington up to now three months.
Right here’s what else we’re preserving tabs on at this time:
5 extra high tales
1. The Dalai Lama has stated that the Tibetan Buddhist neighborhood he leads has the “sole authority” to recognise his future incarnation, asserting management over a succession process contested by China. The non secular chief, who will flip 90 on Sunday, stated he anticipated the position he occupies to proceed after his dying.
2. Sir Keir Starmer has stated Rachel Reeves will likely be chancellor for “a really very long time to return” because the prime minister moved to stem hypothesis over her future. UK authorities bonds and the pound fell sharply yesterday afternoon after Starmer declined to back a tearful Reeves within the Home of Commons following Labour’s dramatic gutting of its welfare invoice.
3. Goldman Sachs stood to lose simply $300mn in an financial shock underneath the Federal Reserve’s stress check situation this yr, vastly lower than the $18bn forecast a yr earlier — and a giant purpose for the financial institution’s outsized shareholder payouts. Here’s how the Wall Street bank won the Fed’s stress test.
4. A jury has acquitted rapper-entrepreneur Sean “Diddy” Combs of intercourse trafficking and racketeering, however convicted him of prostitution-related costs, in a broadly watched New York federal courtroom case. The case of Combs, a Grammy award-winning artist, is among the many most high-profile reckonings with sexual misconduct within the music enterprise. Read the full story.
5. Shares of New World Improvement, the closely indebted Hong Kong property group, jumped yesterday as traders welcomed the end of its refinancing talks with banks and the resignation of the founder’s grandson from his remaining board roles. New World has been hit by a market downturn following a interval of debt-fuelled enlargement.
Information in-depth
Trump has narrowly handed his “large, lovely invoice” by way of the US Senate. However the laws nonetheless faces hurdles, together with the Home, the place a number of of his fellow Republicans have threatened to vote in opposition to it. However even when the president is ready to get them in line, he faces a giant job in defending the laws earlier than an American public that already seems to be souring on it.
We’re additionally studying . . .
Chart of the day
Ingesting has turn into more prevalent among Gen Z as child boomers in the reduction of their alcohol consumption, in accordance to an intensive examine by market analysis firm IWSR. The findings name into query the idea that Gen Z has turned its again on ingesting en masse.
Take a break from the information
The latest heatwaves in Europe and the US have made travelling to the workplace insufferable at occasions. Becky Malinsky, a New York-based private stylist, provides recommendation on how to dress for work in hot weather.
