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good morning. I’ll be back in work week. Here’s what we cover today:
Trump’s budget bill faces Senate votes
Canada Scrap Technology Tax
Pushing to private credits for hedge funds
And the beginning of Wimbledon
The Senate will begin voting later today for amending Donald Trump’s groundbreaking tax and spending bills. Here’s what you need to know after the weekend of discussions over the “Big Beautiful Building”:
Summary: There was little discussion. The Senate narrowly agreed to begin deliberations on Saturday after intervention by the president and Vice President JD Vance. Democrats have called for a full read of the 940-page bill on the Senate floor, with North Carolina Republican Sen. Tom Tillis, who said he would not seek reelection next year after voting to start debate, eliciting a ferocious response from Trump, who threatened him with his main challenge. Meanwhile, the non-partisan Congressional Budget Office yesterday released its latest estimate of the bill’s costs on national debt. It has won 3.2 TN $ over the next 10 years, surpassing the post-World War I highest. This number is being contested by Republicans.
Why it matters: The bill funds the drastic tax cut extension introduced during Trump’s first period by reducing spending on healthcare and social welfare programs. It also increases military and border security spending. But Democrats and some Republicans say planned spending cuts will reduce access to Medicaid services for the poor. The bill narrowly passed the votes in the House of Representatives last month after several days of contest, and is now facing a potential marathon voting session in the Senate. Once the Senate passes the bill, he must return home for final approval before being sent to the White House for president’s signature. Trump says he hopes the bill will be passed by Friday. For more information about weekend events, click here.
And here’s the other thing we keep tabs today:
Market: U.S. stocks are expected to open in positive territory following record closures on Friday. The S&P 500 has risen 27% since it reached its 15-month intraday low on April 7, days after the president announced its “mutual tariffs” plan.
Interest Rates: President Rafael Bostic of the Federal Reserve Bank of Atlanta speaks about Chicago’s President Austan Ghoolsby’s economic outlook and monetary policy.
Five more top stories
1. Canada has abolished the digital services tax targeting US technology companies to facilitate negotiations with their neighbors after Trump described collection as a “direct and blatant” attack. The decision to waive the 3% claim was due for taxation.
Q&A: Canadian correspondent Ilya Gridneff answers readers’ questions about US-Canada relations in a future edition of Firstft Americas. If you are reading this newsletter on Inbox, send it to firstft@ft.com or hit reply.
2. Donald Trump says he has found a “very wealthy group” to buy Tiktok’s US business as part of his efforts to separate ownership from China. “We’ll talk about it in about two weeks. It’s a group of very wealthy people,” he told Fox News yesterday. There are details about who the buyer is.
NVIDIA: Insider has sold over $1 billion in shares in the company over the past 12 months. According to Forbes, Jensen Huang’s net worth is currently $138 billion.
3. Large hedge funds are pushed to private credit as they seek to establish themselves as diverse financial institutions, with Millennium Management, POINT72 and Third Point all aiming to launch new funds and strategies. Please read the entire story.
4. The Wall Street comeback dramatically narrowed the gap with European stocks. The outperformance of American stocks disrupts bets that the president’s trade policy will cause permanent rotation into other markets, particularly Europe. “The problems with Europe have always been revenue, revenue, revenue,” the fund manager said.
5. China’s export restrictions spread to products beyond rare earths and magnets, threatening disruption in the broader supply chain, and undermine US claims that new trade contracts have resolved delays in shipment. Edward White has details from Shanghai.
Rare Earth Details: European industrial groups are turning their eyes to France as they seek to reduce their dependence on China on important minerals.
China’s economy: Beijing has failed to overcome dozens of “choke points” that are key building blocks in modern manufacturing.
Detailed news
Once the enemy was closed, a secret nuclear program was built deep underground and protected from the eyes of America. At least one elementary nuclear weapon was quickly constructed. This was Israel in 1967, facing an existential threat. However, the story isn’t that different for Iran today. It requires you to confront the same question. Do you create a measure of ultimate deterrence by sprinting towards nuclear weapons or retreat from the brink?
We’re reading too. . .
Trump shock? The real surprise is that despite his policies and the turmoil in the Middle East, U.S. stocks are still rising, writes Ruchir Sharma.
Financial control: An economic policy war has begun, supported by national activities in shaping capital flows, writes Martin Sandub.
Boomerang Bankers: The phenomenon of people returning from the industry is more common than you think, writes Craig Coven.
Roundup of the Business Book: Young workers reach the top, manage the crisis and give advice on key comprehensive missions. Here are some business book selections for this month:
The chart of the day
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European tourist hotspots have been favored for record numbers this summer as holidaymakers spurred the US and the Middle East this summer. Analysts say European vacationers are partly responsible for the rise in visitor numbers to top destinations on the continent, but the main reason is the strong post-pandemic bounceback of visitors from the US.
Take a break from the news
Today marks the beginning of Wimbledon, the only Grand Slam tennis tournament to be performed in Grass. FT Globetrotter has created this guide for men and women who compete for two of the top tennis trophies, as well as a familiar feature that doesn’t exist this year.
