Good morning, I’m back to Firstft Asia. In today’s newsletter:
Trump warms up to NATO – and Zelenskyy
Singapore’s cryptocurrency crackdown
Can HSBC cut the path to growth?
We will start with yesterday’s NATO summit in The Hague. There, Donald Trump changed his songs for his Russian and Ukrainian counterparts. It also confirmed its support for the military alliance.
What happened: Trump met Ukrainian Voldy Mee Zelensky on the sidelines of the NATO summit, then described him as “very nice” while slamming Russia’s more harsh tone. “Vladimir Putin really needs to end that war,” Trump said. He added that the Russian leader had offered mediation in the Iran-Israel conflict, and replied, “No, you will help me in Russia.”
Why it matters: Trump vibrates with his attitude towards his Russian and Ukrainian counterparts, collapses in his oval office with Zelensky in February. In contrast, Trump initially seemed to understand Putin better, but he called several times and with his negotiation team, the US was engaged in peace talks directly. However, in recent weeks, Trump has become increasingly irritated with the Russian president for refusing to agree to his biggest demands and ceasefire.
Historic Regeneration Shift: NATO Allies have pledged to meet Trump’s demands to raise defensive spending to 5% of GDP by 2035. Trump assured his 31 allies “who will be with them all the time” that he had eased concerns that he was trying to renegotiate a mutual defense agreement that had formed the bedrock of European security for 80 years.
Here is the other thing we keep tabs today:
Five more top stories
1. The Chinese Prime Minister warned that there was a risk of “fragmentation” of global supply chain amid trade tensions, and said the country would “open a door that still extends to the world.” Beijing’s second-highest ranking official said that technological advances could be exploited in other countries as China outlined its shift from manufacturing power to a “mega-consumer market.”
2. Hong Kong and Dubai are the main beneficiaries of Singapore’s crackdown on crypto exchanges, and unlicensed players are expected to be closed or forced to operate by the end of the month. City-states have long touted stability as a global financial hub, but three years ago the famous collapse of several crypto businesses has damaged its reputation. Read more about Singapore’s crypto crackdown.
3. Nvidia’s stock hit a record high yesterday, marking the turnaround for chip companies following a rocky start marked by US-China tensions over key artificial intelligence technologies. US chip designer stocks rose 4.3%, moving Nvidia ahead of Microsoft as the world’s most valuable company
4. Trump branded Zohran Mamdani as “100% Communist Madman” the day after New York mayoral hopeful won a surprise victory in the city’s Democratic primary. Trump’s post comes hours after the 33-year-old left-wing candidate emerged from ambiguity to shock the democratic establishment of the nation.
5. After months of speculation about a deal that combines the two biggest oil companies in the UK, Shell denied that buying rival BP was a consultation. The denial follows reports that the companies were talking early on about an acquisition agreement to create a global energy group worth more than £200 million. Please read the entire story.
Big reading
©ft Montage;Getty Images
HSBC’s new CEO, Georges Elhedery, has secured work on the pitch to reduce the complexity of “local banks around the world” and increase profitability. Eight months after Lebanese-born El-Headery announced his restructuring plan, which he mostly provided. However, some are concerned that banks are abandoning their global ambitions in favor of returning to their Asian roots at the expense of future growth.
We’re reading too. . .
China’s “Little Africa”: The pandemic has threatened communities decades ago, but the pull of Guangzhou’s trade hub has proven attractive, writes William Langley.
Chip War: The most structurally important movement in the Chip War comes from Taipei, not from Washington, writes June Yun.
Dementia: Some vaccines may reduce the risk of dementia, according to a study from the University of Oxford.
The chart of the day
The fierce expansion of India’s aviation industry was part of Narendra Modi’s story of the rise of the country under his decades of power. However, the fatal crash on June 12th in Air India tests the prime minister’s ambitions.
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Take a break from the news
To celebrate St. Paul’s 350th anniversary, FT’s Charlie Bibby was granted unprecedented access to the mechanics inside. Our Chief Photographer reveals the nameless hero who makes the world-famous London Cathedral tick.
©Charlie Bibby
