United States

Chinese President Xi Jinping sharply criticized Japan's defense buildup during November's Beijing summit with Trump, accusing Tokyo of "remilitarisation" as Prime Minister Sanae Takaichi pushes defense spending toward 2% of GDP by 2027. Sources briefed on the talks told the Financial Times Xi specifically targeted Japan's counter-strike capabilities and deepening U.S. Alliance ties, framing them as regional threats. The comments came amid escalating China-Japan tensions over the East China Sea and Taiwan, with Japan identifying China as its "greatest strategic challenge" while acquiring long-range missiles and expanding rapid deployment forces. Despite the diplomatic friction, no major agreements emerged from the Trump-Xi meeting on Iran, Taiwan, semiconductors, or rare earths.

Attorney General Jeff Jackson filed breach of contract claims after VinFast missed hiring deadlines and scaled back its promised $4 billion EV plant to a shadow of original plans. The Vietnamese automaker cut planned workforce from 7,500 to 1,400 jobs and delayed opening from 2024 to 2028, while no substantial construction has occurred since December 2024. The state wants to use contractual safeguards to repurchase the Chatham County mega-site and offer it to another manufacturer. VinFast's financial struggles include spending $1.57 for every $1 of revenue and closing US showrooms.

The Mexican food chain is exiting America after failing to entice local diners, despite raising A$240 million at a 37x earnings multiple that briefly sent shares up 1,000%. GYG's withdrawal follows Morningstar analysis showing US operations were unlikely to contribute meaningfully for up to 10 years, even as the company claimed improved momentum in H2 2025. The retreat highlights the difficulty foreign QSR brands face cracking the US market, even when they dominate at home. GYG will now focus capital on its 185 Australian restaurants and Asian markets where unit economics actually work.

China is stalling approval for Pentagon official Elbridge Colby's Beijing visit as leverage against a proposed $14 billion US arms package for Taiwan, following December's $11.1 billion weapons sale that already angered Beijing. The diplomatic pressure tactic comes after Xi Jinping reportedly pressed Trump to show restraint on Taiwan arms transfers during a February call. For investors, the significance extends beyond the weapons themselves to US-China strategic stability, semiconductor supply chain risk, and the precedent of Beijing tying military engagement to Taiwan policy decisions.

Brussels fast-tracked ratification of its new trade deal with the US after Trump threatened sharply higher tariffs beyond his 15% baseline. The agreement locks in a $750 billion energy purchase commitment and $600 billion in EU investment over Trump's term. European Parliament members who wanted to slow-walk approval over sovereignty concerns were overruled to avoid immediate tariff retaliation. The deal still contains legally non-binding elements that could unravel if political winds shift, but Trump's brinkmanship worked. EU exporters in autos, pharma, and semiconductors now face predictable 15% duties rather than open-ended escalation.

The Pentagon plans to withdraw about 5,000 troops from Germany, reducing the US force posture in Europe from four brigades to three and returning to roughly pre-Ukraine invasion levels. The move comes after German Chancellor Friedrich Merz criticized US handling of the Iran conflict, straining transatlantic relations. Congress passed a defense law in December barring the Pentagon from reducing total European troop levels below 76,000 without assessing security risks. The cut affects logistics, command-and-control, and rapid reinforcement capacity at a time when European leaders worry about America's commitment to continental defense. Germany hosts Ramstein Air Base and other critical infrastructure supporting US operations across Europe.

Plaza Hotel offers packages from $104 per person per night including meals and pool access, while MGM's Luxor deal starts around $330 for two nights with show tickets and dining credits.

NextEra is acquiring Dominion Energy for about $67 billion in the biggest power deal ever, explicitly targeting AI's electricity crunch. The combined entity would control over 130 gigawatts of large-load opportunities, with Dominion serving 450 data centers in Northern Virginia's 'Data Center Alley' where AI accounts for 24 percent of electricity sales. PJM wholesale power costs jumped 75.5 percent year-over-year to $136.53/MWh in Q1, while capacity prices hit the regulatory cap of $329.17/MW-day as 94 percent of forecast load growth through 2030 comes from data centers. NextEra's CEO John Ketchum has pivoted from pure renewables to an 'all forms of energy' model specifically to supply 24/7 baseload for AI workloads. The deal signals that AI's power hunger has reached mega-cap M&A scale, turning electricity access into the new strategic constraint for hyperscalers.

US authorities are ending fraud investigations against Indian billionaire Gautam Adani after he hired a Trump-linked lawyer and pledged $10 billion in US investments, according to multiple reports. The decision comes separately from Adani Group's $275 million settlement of US sanctions violations and follows the 2023 Hindenburg Research report that accused the conglomerate of stock manipulation and accounting fraud. Adani's net worth collapsed from over $120 billion to around $70-100 billion after the allegations but has partially recovered as immediate default fears receded. The resolution removes a major overhang for Asia's richest person while raising questions about whether investment pledges influence US enforcement outcomes. Indian regulatory probes by SEBI continue on separate tracks, suggesting the legal clarity may be limited to US jurisdictions.

Gina Rinehart is putting almost US$100 million into American weapons-makers, marking a sharp pivot from her traditional iron ore empire into the military-industrial complex. The investment comes just months after the Pentagon guaranteed floor pricing for rare earth metals that boosted her MP Materials and Lynas holdings by $300 million. Her timing looks prescient: global defense spending is accelerating while her existing rare earths portfolio positions her perfectly within US supply chain priorities. The move transforms Australia's richest woman from a mining magnate into a defense ecosystem player, complete with a $200 million veterans housing pledge that reads like political air cover.

The 20-year Treasury yield spiked to 5.14% on Thursday, its highest level since August 2023, as markets price in a world where inflation never really dies. Traders now assign almost two-thirds probability to a Fed hike by December, a stunning reversal from rate cut expectations just weeks ago. The move matters because long yields set the cost of everything from mortgages to corporate debt, and at 5.14% they're screaming that something fundamental has shifted in the inflation equation.

Trade Representative Jamieson Greer expects China to commit billions in US agricultural purchases, with Beijing already one-third through its soybean commitments for this growing season. Soybean prices jumped 12-15% on the news, but industry reports suggest traders expect diversified buying rather than the concentrated soybean surge of previous deals. The agricultural promises come with Beijing seeking relief from the blanket 10% tariff on Chinese goods. Watch whether this translates to actual purchase orders or becomes another Phase One-style commitment that underdelivers when political winds shift.

The SEC agreed to settle its civil fraud case against Gautam Adani over alleged concealment of a bribery scheme tied to a $750 million 2021 bond offering. Adani had argued the case lacked US jurisdiction since the conduct occurred in India and the bonds were fully repaid with all interest in 2024. The settlement removes one layer of US legal risk for Asia's richest man but leaves the parallel Brooklyn criminal case unresolved. The timing coincides with Adani's reported lobbying of the Trump administration and pledged US investments, raising questions about whether enforcement decisions reflect legal merit or geopolitical considerations.

CIA Director John Ratcliffe met senior Cuban intelligence officials in Havana Thursday, with CBS reporting he delivered a message that the US was prepared to expand engagement if Havana made fundamental changes. The rare visit coincides with Cuba's energy minister warning of blackouts lasting 20-22 hours daily after the national grid failed. The State Department renewed an offer of $100 million in direct humanitarian aid, but only through the Catholic Church and independent groups bypassing the Cuban state. The conditional opening suggests Washington sees opportunity in Cuba's crisis but won't abandon leverage for symbolic gestures.

Trade Representative Greer confirmed both sides are willing to maintain the current truce while continuing a Section 301 investigation opened in October that could justify new tariffs. China has completed about one-third of its soybean purchase commitments, but Greer warned China typically retaliates against US actions by targeting farmers. The parallel tracks reveal the administration's strategy: keep dialogue alive while preserving legal grounds for pressure. The Supreme Court case challenging Trump's reciprocal tariffs makes Section 301 authority more critical if existing trade tools face judicial limits.

Geopolitical thaw meets AI euphoria as markets price lower tail risk. South Korea's KOSPI hit records with a 6.5% jump, Samsung crossed $1 trillion in market cap, and China's STAR Market surged 5.5% on reopening after holiday closures. Trump's arrival in Beijing with Nvidia CEO Jensen Huang signals potential cooperation on AI development despite broader trade tensions. Oil fell 1% after Trump paused Persian Gulf escort operations to make room for Iran talks, removing near-term energy price pressure from the tech rally equation.

NJ Transit slashed round-trip tickets to MetLife Stadium from $150 to $105 for World Cup matches after receiving sponsor funding to offset its $48 million service costs.

Goldman Sachs revised its yuan forecasts higher across all timeframes, calling the currency one of its highest conviction trades for 2026. The bank's GSDEER model shows the yuan trading 30 percent below fair value against the dollar, with analyst Teresa Alves pointing to China's export strength and current account surplus as drivers. New targets of 6.50 yuan per dollar by year-end would represent the strongest level since 2018. The call matters because Goldman correctly predicted the 2005 revaluation cycle, and current positioning shows yuan bears retreating after months of one-way bets.

Donald Trump walked back his June 1 threat to impose 50 percent tariffs on EU goods, extending the deadline to July 9 after Ursula von der Leyen requested serious negotiations. The pattern is familiar: announce steep tariffs, spook markets, then delay after diplomatic outreach. EU goods currently face 10 percent duties, rising to 20 percent in early July without a deal. With 44 days remaining and a $236 billion trade deficit as leverage, Trump has created a binary outcome that could either produce genuine concessions or trigger the largest transatlantic trade war in decades.

Beijing's financial regulator quietly ordered state banks to halt new loans to five refineries blacklisted by Washington for Iranian oil ties, including Hengli Petrochemical, one of China's largest private refiners. The same week, China's commerce ministry invoked blocking statutes instructing firms to ignore US sanctions. This dual approach protects systemically important banks from secondary sanctions while publicly defying Washington, classic Beijing hedging ahead of the Trump-Xi summit.