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Good morning and welcome back to FirstFT, your early morning business briefing from the FT. Today we’re covering:
Donald Trump’s decision to deploy marines to LA
The first day of Apple’s developer conference in California
An interview with the new Boeing CEO
And new research on how our brains age
Donald Trump’s administration plans to send hundreds of US marines amid protests that began at the weekend against raids on alleged illegal immigrants, a decision that escalates the clash between the federal government and the US’s most populous state.
What’s happening: About 700 marines would be deployed to Los Angeles to protect “federal personnel and federal property”, the US Northern Command said yesterday. The Trump administration also authorised another 2,000 national guardsmen to be deployed to LA late last night, bringing the total to 4,000 despite opposition from California’s Democratic governor, Gavin Newsom, and local leaders. The Trump order followed Newsom’s decision to sue the president, calling his decision to deploy state troops an “unprecedented usurpation of state authority”.
Why it matters: The mobilisation of marines will intensify the stand-off between the White House and state and local leaders over the use of troops. Military forces frequently assist in the US during natural disasters and other incidents, but it is rare that they are deployed to aid in domestic law enforcement, particularly without the support of the state’s governor. Read this story for the latest on protests and more below:
FT View: Trump’s show of force in Los Angeles is a warning to states opposed to his immigration clampdown, the editorial board writes.
Stephen Miller: The architect of Trump’s hardline immigration policy has a blueprint for implementing the president’s signature pledge.
Here’s what else we’re keeping tabs on today:
Companies: JPMorgan chief executive Jamie Dimon and Wells Fargo chief financial officer, Mike Santomassimo, will speak at the Morgan Stanley US Financials conference in New York. Jif peanut butter maker JM Smucker reports results.
Economic data: Brazilian statistics agency IBGE publishes inflation figures relative to May. Mexico’s consumer price data for the same month is also expected.
The FT’s annual securitisation market accelerator event Global ABS begins in Barcelona, running until Thursday. Register here
Five more top stories
1. Apple will allow millions of app developers to access its artificial intelligence models for the first time, as the tech giant looks to capitalise on its vast hardware and software ecosystem to give it an edge over its competitors. Here’s more from the company’s flagship annual developer event.
2. Kevin Hassett, director of the White House National Economic Council, said Donald Trump would ease restrictions on selling chips to China if Beijing agreed to accelerate the export of rare earths and magnets. Talks between the two countries began yesterday in London and are expected to continue through the week.
3. Exclusive: The head of the Panama Canal’s operator has warned that a $23bn global ports deal between CK Hutchison and MSC, that includes two facilities in the Central American country, could put the waterway’s neutrality mandate at risk, adding that the concentration of ownership could disadvantage some shipping companies.
5. US health secretary Robert F Kennedy Jr has fired all members of the advisory committee for immunisation practices which makes recommendations about vaccine dosages for Americans and the age they should be administered. Kennedy, an outspoken vaccine sceptic, said he was remaking the panel to restore public trust in it. Senate minority leader Chuck Schumer, a Democrat, called the move “reckless”.
5. Prime Minister Mark Carney has announced the biggest boost to Canada’s defence spending since the second world war in response to criticism from Donald Trump. He pledged to reach Nato’s defence spending target several years ahead of the previous 2032 goal. Here’s what the money will be spent on.
News in-depth
In 2020, the Financial Times exposed a €2bn fraud at Wirecard, a high-flying German fintech. Many thought that was the end of the story. But for FT reporter Sam Jones, it was just the beginning. Hot Money, the award-winning podcast series from the Financial Times and Pushkin Industries, returns for a third season.
We’re also reading . . .
Kelly Ortberg interview: The new Boeing chief talks to the Financial Times about leading the aircraft maker’s “multiyear” turnaround.
OpenAI: The company behind ChatGPT expects subscription revenue to almost double to $10bn but remains lossmaking, as are its biggest rivals.
More than a passing fad: The launch of Nintendo’s new Switch 2 console is not just an important moment in the life of the games industry, but also in the cultural and political life of the planet, argues Stephen Bush.
Ageing: A new longitudinal study has painted a very different picture of what happens to people’s cognitive skills as they age, writes Sarah O’Connor.
Chart of the day
Since Time Warner and Discovery Communications merged in 2022, shares in the combined group, Warner Bros Discovery, have dropped 60 per cent — well behind streaming rivals such as Netflix. Yesterday, WBD announced it was splitting. Investment column Lex looks at the challenges facing the cleaned-up group (available to premium subscribers only).
Take a break from the news
Great family sagas can be timeless portraits of families adapting to change, at home or in exile, writes Nilanjana Roy. Authors today take a closer look at childhood bonds and fractures, breathing fresh life into a form as old as time.
Source: Economy - ft.com
