Good morning. Federal agents searched the Florida residence of Donald Trump last night — a significant step by prosecutors regarding the former president’s handling of classified information.
Trump disclosed the raid in a statement posted on social media in which he said that a “large group” of FBI agents were at the Mar-a-Lago club, his residence in Florida. He added that it was “currently under siege”.
The Department of Justice and FBI declined to comment, but one person familiar with the search said it was related to Trump’s handling of sensitive material from his time in the White House. Earlier this year, 15 boxes of classified documents, including some that were marked “top secret”, were retrieved from his Florida home.
The search by the FBI represents a remarkable step by US authorities to scrutinise the actions of a former president. Such a move is likely to have been approved at the highest levels of the justice department, including attorney-general Merrick Garland.
Dig Deeper: Edward Luce explains why putting the former president in the dock risks civil strife, but a failure to act is also dangerous
Five more stories in the news
1. Taipei accuses Beijing of trying to take control of Taiwan Strait Taipei has warned that China could use military drills around the island to establish control over the entire Taiwan Strait. The warning, from foreign minister Joseph Wu, came as the People’s Liberation Army said it was extending joint air and naval exercises around Taiwan for a second day — they were originally scheduled to end on Sunday.
2. US pledges further $1bn in military aid for Ukraine The new package, the largest single drawdown since the start of Russia’s invasion, will include ammunition for high mobility artillery rocket systems (Himars) and bring total US security aid to Ukraine since Biden took office to about $9.8bn.
3. Masayoshi Son ‘ashamed’ of focus on profits Huge losses at SoftBank’s flagship Vision Funds will force the Japanese investment group to begin “dramatic” cost-cutting after plunging technology valuations and a weak yen drove the conglomerate into a record $23bn quarterly net loss.
“If we had been a little more selective and invested properly, it would not have hurt as much” — Masayoshi Son
4. ‘Final text’ submitted in effort to revive Iran nuclear deal EU officials mediating talks between the US and Iran aimed at reviving the 2015 nuclear accord have put forward the “final text” of an agreement they hope will convince Tehran to sign. The latest round of negotiations bore the hallmarks of a last-ditch attempt to secure an agreement between the Islamic republic and the Biden administration.
5. London’s ‘magic circle’ law firms make renewed bid to crack US For decades, cracking the US has proved to be a step too far for London’s top corporate law firms. But Freshfields Bruckhaus Deringer, Clifford Chance and Allen & Overy are all in the midst of a multipronged and expensive assault on the world’s most lucrative legal market as the “magic circle” firms seek to build on their past strength in Europe and become global heavyweights.
The day ahead
Kenya general election In one of Africa’s most significant elections of the year, Kenyan voters will select the president, deputy, members of parliament and devolved government members. Presidential candidates Raila Odinga and William Ruto are deadlocked in polls.
Rudy Giuliani to testify The former New York City mayor turned personal attorney to Donald Trump has been ordered by a judge to testify in front of a Georgia grand jury over attempts by the former president’s supporters to overturn the 2020 presidential vote in the state.
Corporate earnings The InterContinental Hotels Group, which owns the Holiday Inn and Crowne Plaza chains, will publish half-year results. In February, IHG said business was “closer to pre-pandemic levels” as rising vaccination rates boosted demand for its hotel rooms. Half-year results are also in for Legal and General and Munich Re, while Ralph Lauren reports first-quarter earnings.
Brazil Monthly inflation data will be released today.
What else we’re reading
How corporate raiders became teams of rivals The private equity industry was founded by mercenary dealmakers who bludgeoned opponents to win control of large corporations such as RJR Nabisco, Alliance Boots and Philips Semiconductors. Now, firms nurture complex relationships with their competitors. How did they get here?
Xi Jinping completes grip on power Xi finally has something that eluded him for almost a decade, explains Tom Mitchell in Singapore in this insightful article: a trusted confidante at the top of China’s police ministry. Wang Xiaohong’s appointment as public security minister in June marked another breakthrough for Xi in his relentless consolidation of power since being appointed head of the Chinese Communist party and its Central Military Commission in 2012.
It’s too early to declare the risk of US recession over Some believe the recent jobs report implies the US will avoid a recession. While he hopes this is correct, Mohamed El-Erian writes that it is too early to declare the watch over — something that the government bond market seems attuned to.
Small businesses count cost of Apple’s changes Small businesses are cutting back their marketing spend owing to the tech giant’s sweeping privacy changes that have made it harder to target new customers online. This has led to billions of dollars in lost revenues for platforms such as Facebook, while many small companies are also suffering. Find out why.
Corporate America fumes over Biden’s tax and climate package Corporate America had been warning the president and congressional Democrats not to raise taxes on big business ever since they were elected. So when lawmakers approved those tax increases as part of a $700bn economic package that passed the Senate on Sunday, companies and their lobbyists reacted with howls of protest, as James Politi in Washington and Andrew Edgecliffe-Johnson in New York, explain.
Germans plan soccer spree
Bayern Munich, one of the most dominant soccer teams in Germany, is targeting growth in the US as it pushes to close the gap with high-spending rivals in the English Premier League.
Oliver Kahn, chief executive of the club, and a former captain of both Bayern and the national team, told the FT the club was seeking to expand its fan base overseas, with a view to boosting the long-term value of global broadcast rights for the Bundesliga football league.
Source: Economy - ft.com
