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Good morning, happy Friday and return to Firstft Asia. In today’s newsletter:
Dimon’s dull message to Europe
How Heatwaves is boosting Uniqlo’s profits
The Fed’s independence under threat
Jamie Dimon, CEO of JPMorgan Chase, warned that European leaders have had competitive problems and are now “losing” in a battle comparable to the US and China.
Dimon on EU competitiveness: “Europe has gone from 90% US GDP to 65% over 10 or 15 years. That’s not good,” he said at an event hosted by the Irish Foreign Office in Dublin. “You’re losing,” a comment from Dimon, one of the most influential voices in global finance, highlights the challenges the EU faces as they fight to stimulate the economy.
About tariffs: Dimon also warned that financial markets are too relaxed about the repeated threats of Donald Trump’s tariffs. Yesterday, investors ruled out the latest threats for the US president, including 50% tariffs on copper, 200% tariffs on the drug sector, and collections in countries, including Japan and South Korea. “Unfortunately, I think there’s a complacent thing in the market,” he said.
Dimon also shared his thoughts on the so-called taco trade and potential troubles for Trump. read more.
Here are other things that keep tabs today and weekends:
Economic Data: Malaysia has published its industrial production index and manufacturing sales for May. The June PMI is scheduled for New Zealand.
Australia-China Bond: Australian Prime Minister Anthony Albanese will begin visiting China on Saturday.
Wimbledon Tennis: US Amanda Anishimova will face Poland’s Igawittek in the women’s singles final on Saturday. The men’s final, which has not yet been decided, will be held on Sunday.
How well did you get with this news this week? Take the quiz.
Five more top stories
1. Fast Retailing, owner of the Uniqlo brand, reported a global change in shoppers buying a lighter layer of clothing to deal with the longer and hot summers. This trend has put Asia’s biggest clothing retailer on track, recording record annual profits, and highlighting that climate change is beginning to reshape consumer behavior.
2. The Pentagon is making $400 million direct investments in rare earth producers in the United States in an unusual arrangement that underscores the Trump administration’s resolve to break China’s control of key minerals and strengthen its domestic supply chains. The company’s MP Materials said yesterday that the Pentagon will become its biggest shareholder.
3. South Korean policymakers are struggling to stimulate economic growth in the face of an escalating world trade war. They fear that cutting interest rates will raise property prices in some of the most desirable parts of Seoul, and will burn an already overheated market. The Bank of Korea yesterday held interest rates at 2.5%, opposing the pressure to support the economy it signed in the first quarter.
4. Moet Hennessy faces charges of sexual harassment, gender discrimination and unfair dismissal in a lawsuit that says people who worked in the business are symptom of broader cultural issues in LVMH’s 6 billion euro drinks sector. Adrienne Klasa has details of this case.
5. Indonesia is calling on Brussels to further delay its groundbreaking deforestation laws, adding to the increased pressure from the EU government that demanded policymakers to reduce the “snagging” requirements on producers. The controversial ban on products from deforested land sold in the bloc has been heavily criticised by several EU trading partners, including Brazil and the United States.
Big reading
Donald Trump’s growing frustration with the US Federal Reserve has led him to describe that chair, Jerome Powell, in various ways as “silly”, “awful”, “numbskull”, “stubborn mule”, and “complete and complete idiot”. Inhumousness overwhelmed the dollar, worrying about the central bank’s independence, but replacing him with a more flexible person is not easy. Can the Fed remain independent under Trump?
We’re reading too. . .
Trump vs. Lula: Brazil’s leftist president is seizing tariff threats on the US president to revive the prospect of reelection.
Tesla’s Wild Card: The huge Elon Musk Premium of the electric car maker’s stock is an extreme version of Silicon Valley Founders Syndrome, writes Richard Waters.
“Explicit and Intelligent”: Billionaire mining entrepreneur Robert Friedland welcomed Trump’s pledge to impose a 50% tariff on copper imports.
The chart of the day
Market volatility is approaching this year’s lowest level, with stocks trading at record highs as investors are venting Trump’s latest tariff threat. Max Kettner, Head of Multi-Asset Strategy at HSBC, said:
Take a break from the news
Here are six of the week’s films, including the latest Superman film, a “fun ride with an appetite for ugly politics,” written by FT film critic Danny Lee.
