Ata mārie and welcome to your Monday recap of the top international business and political stories.
First, US President Donald Trump doesn’t think an extension is needed for the July 9 trade deadline imposed on countries to secure deals and avoid higher tariffs, Bloomberg reported.
“I don’t think I’ll need to,” he told Fox News.
Last week, Trump said his administration could do “whatever we want” with the deadline, including extending it or making it shorter.
Meanwhile, US shares rose after the US reached an agreement with China to speed up rare-earth shipments, the Guardian reported.
The S&P500 and the Nasdaq both hit new highs amid news of wider efforts to end the trade dispute between the US and other nations.
Trump said the US had signed a deal with China, while he indicated a separate deal could be green lit to “open up” India. China confirmed the details of the deal on Friday local time and confirmed it would continue to approve export permits.
On the flipside, UK car exports to the US slumped in May, while UK car production fell to a 76-year low because of trade tension, the Guardian reported. Vehicle shipments to the US fell 55% last month, according to new data from the Society of Motor Manufacturers and Traders.
To the Middle East, Trump suggested a Gaza ceasefire between Israel and Hamas could be reached within a week, Al Jazeera reported. “I think it’s close. I just spoke to some of the people involved,” Trump said. “We think within the next week we’re going to get a ceasefire.”
On the ground, Israel continued its attacks, including one that killed at least 20 people, including nine children, over the weekend.
Israel claimed it killed senior Hamas figure Hakham Muhammad Issa al-Issa. The Palestinian Olympic Committee said at least 13 athletes were killed by Israeli attacks in June, Al Jazeera noted.
Meanwhile, Trump criticised prosecutors in Israel over the corruption trial involving Israeli Prime Minister Benjamin Netanyahu, CNBC reported. Netanyahu was indicted in 2019 on charges of bribery, fraud, and breach of trust. He denied all charges. The trial started in 2020 and involved three criminal cases.
On Friday local time, the court rejected a request to delay Netanyahu’s testimony for the next two weeks.
Trump lashed out on social media. “It is INSANITY doing what the out-of-control prosecutors are doing to Netanyahu.”
Israeli Prime Minister Benjamin Netanyahu.
UN nuclear watchdog head Rafael Grossi said US strikes on Iran this month fell short of causing total damage to the country’s nuclear programme.
He said Iran could restart enriching uranium “in a matter of months,” CNN reported.
Officials suggested the US strikes on three nuclear sites did not destroy the core components of its nuclear programme, and likely only set Iran back by months.
Elsewhere, new inflation data raised concerns the US economy could be heading towards recession.
The Personal Consumption Expenditures Index, the Federal Reserve’s preferred inflation gauge, was stronger than expected in May. The index rose 0.1% last month, while the annual rate rose to 2.3%.
Financial advisory firm deVere Group chief executive Nigel Green said price pressures remained embedded in the system. “We’re now looking at an environment where the Fed cannot cut rates any time soon, even as consumer spending and personal income are already slipping.
“Inflation isn’t cooling fast enough, and they can’t justify easing policy while these price pressures remain. But at the same time, the consumer is already showing signs of cracking under the weight of previous rate hikes.”
Over the Ditch, close to one hundred Australians who earned more than A$1 million in income, paid no tax in 2022/23, according to the Australian Taxation Office, the ABC reported.
Analysis of the 91 millionaires showed they claimed A$390m worth of different deductions to reduce their tax bills to zero. Most of that was A$291m in donations to charities.
Australia Institute chief economist Greg Jericho said the country’s wealthiest could use the tax system to reduce tax bills to zero, with the help of “high-priced” tax lawyers and accountants.
