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Good morning, here’s what we’re going to cover today:
But we start with a new super political action committee supporting Donald Trump’s run for President, which is backed by U.S. tech and business leaders.
America Pak has raised more than $8.7 million since it was founded last month, according to public filings, including several $1 million donations from Silicon Valley investors who have publicly supported Trump in recent weeks.
Palantir Technologies co-founder Joe Lonsdale, venture capital pioneer Doug Leone and the Winklevoss twins have already donated to the Trump campaign, as have Sequoia partner Sean Maguire and Valor Equity Partners founder Antonio Gracias.
A person with direct knowledge of the super PAC said Tesla and X CEO Elon Musk plans to donate. Musk endorsed Trump on Saturday, shortly after the Republican candidate was nearly assassinated at a rally in Butler, Pennsylvania. Yesterday, Musk called Trump’s choice of J.D. Vance for vice president “great.” Read more about America PAC and the campaign money flowing to Trump here.
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More about J.D. Vance: The Ohio senator is an intelligent and powerful promoter of the MAGA movement and perhaps its future, writes Edward Luce.
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Trump and Ukraine: Hungarian Prime Minister Viktor Orban will immediately demand peace talks between Russia and Ukraine if Donald Trump wins the US presidential election in November, he claimed after private talks with the Republican candidate.
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Trump’s challenge: A US judge has dismissed a criminal case against a former president over his handling of classified documents, ruling that the appointment of a special counsel violated the US Constitution.
What I’m focusing on today is:
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Economic data: U.S. retail sales are expected to fall in June after rising in May, while homebuilder confidence is expected to remain stable amid high mortgage rates.
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result: Bank of America, Charles Schwab, Morgan Stanley, PNC Financial Services Group and State Street reported earnings.
Five more top stories
1. Bill Ackman is telling potential investors in his fund as he seeks to go public that his social media presence will help the fund’s success. It is trading at a premium valuation. Ackman is seeking investments for Pershing Square USA, an exchange-traded fund of up to $25 billion, which, if successful, would be one of the largest IPOs in history. More details on the fundraising can be found here.
2. Freshfields Bruckhaus Deringer ranked among the top 10 North American law firms by M&A deal value. Freshfields is vying for a place among Wall Street’s elite amid signs that its expensive hiring spree is paying off: Over the past five years, the firm has hired about 50 top partners from rivals Skadden, Davis Polk and Cravath.
3. The Federal Reserve believes inflation is falling again to its 2% target. That’s what Jay Powell, the US central bank’s governor, said yesterday. Speaking at the Washington Economic Club, he said he has “greater confidence” that consumer prices are moving toward the central bank’s target. You can read more of Powell’s comments here.
4. Turkey is set to announce corporate tax reforms, including a 10 percent minimum rate, as policymakers aim to cool the country’s trillion-dollar economy and bolster government finances. The reforms aim to broaden the tax base and contribute to efforts to tame runaway inflation by tightening fiscal policy. More information on the planned changes can be found here.
5. Increased competition among the world’s largest producers led to an increase in supply, causing cotton prices to fall. Meanwhile, cost-conscious shoppers are looking for clothes made from cheaper fabrics, as a surge in production in Brazil has pushed down prices.
Big Lead
The EU says its pioneering artificial intelligence law, which will officially come into force in August, will protect humans from the dangers of AI, but critics say the law is immature, could burden start-ups with red tape and compliance costs, and could stifle innovation in the tech industry.
We are also reading…
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Larry Fink: Investors are creating a “barbell effect” in the bond market by choosing low-cost exchange-traded funds and alternative assets over traditional bond funds, BlackRock’s CEO said yesterday.
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Venezuela: Authoritarian President Nicolas Maduro has launched a charm offensive as his rivals surge in the polls ahead of this month’s general election.
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Luxury Scale Back: Brands including Burberry and Versace are offering 50% off deals as China’s once-greedy middle-class consumers become more frugal.
Today’s Chart
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Intel’s venture capital arm has emerged as one of the most aggressive foreign investors in Chinese AI and semiconductor startups, raising alarm in Washington. Founded in the early 1990s, Intel Capital holds stakes in 43 China-based technology startups, according to a Financial Times portfolio analysis.
Take a break from the news
From gothic pop to witchy reads, 20 tastemakers share their top literary, musical and podcast picks for summer.
With Irwin Crews Benjamin Wilhelm
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