US inflation data buoys global markets

Good morning and welcome to FirstFT. Immediately we’ll be overlaying:

• The rally in world markets

• The lack of Russia specialists in Washington

• Bolivia’s Sunday election

• And Sam Altman’s newest problem to Elon Musk

Regular US inflation information and the extension of a commerce truce between Washington and Beijing buoyed world shares immediately, as merchants raised bets that the Federal Reserve would lower rates of interest subsequent month.

Japan’s benchmark Topix closed to an all-time excessive, whereas Taiwan’s Taiex and South Korea’s Kospi each strengthened. The Stoxx Europe 600 climbed 0.4 per cent and the FTSE 100 rose 0.3 per cent in early buying and selling.

Why this issues: The unexpectedly benign inflation studying has lifted investor sentiment by defying expectations that President Donald Trump’s tariff blitz would drive up US value pressures. Asian markets have rallied partially on expectations of continued strong US demand for the area’s semiconductor exports.

Right here’s what else we’re holding tabs on immediately:

• Financial information: The Worldwide Power Company releases its oil market report for the month. Canada releases minutes from its most up-to-date curiosity rate-setting assembly, whereas the US has labour market information.

• Outcomes: Balfour Beatty, Cisco Methods, CLS Holdings, Eon, Ørsted, Persimmon, PKO BP, Sixt, Straumann, Tencent, Tui, Vestas and Wienerberger report earnings. See our Week Forward publication for the full list.

5 extra prime tales

1. Trump’s purging of the US federal workforce has hollowed out the variety of educated Russia specialists in Washington, sparking concern forward of his assembly with Russian President Vladimir Putin in Alaska on Friday. The Nationwide Safety Council, which might usually lead preparations for summits, is grappling with the lack of dozens of specialists on workers after they have been fired in Might.

• The White Home has downplayed expectations of a truce on the Alaska summit, with press secretary Karoline Leavitt saying that the assembly could be a “listening exercise”.

2. France, Germany and the UK have instructed the UN they’re ready to reimpose sanctions on Iran until it resumes negotiations over its nuclear programme. The international ministers of the three nations — recognized collectively because the E3 — mentioned they have been ready to set off the “snapback” sanctions mechanism unless the Islamic republic took action.

3. Asset managers specialising in disaster bonds are combating a risk to curb retail entry to the quick‑rising market, as surging gross sales of the property give small buyers a option to guess on the probability of huge pure disasters. Listed below are the businesses that had urged regulators to assist holding “cat” bonds in funds available to the broader public.

4. US Republicans are abstaining from alcohol at document ranges, because the nationwide ingesting price of People plummeted to a nearly 90-year low, in line with polling group Gallup. Simply 46 per cent of self-identified Republicans reported ingesting this 12 months, a decline of just about one-third from 2023.

5. OpenAI and its co-founder Sam Altman are getting ready to again an organization that can compete with Elon Musk’s Neuralink by connecting human brains with computer systems, heightening the rivalry between the 2 billionaire entrepreneurs. Learn extra on Merge Labs, which is elevating new funds at a $850mn valuation.

• CoreWeave dip: The synthetic intelligence information centre operator’s shares dropped as a lot as 11 per cent in after-hours buying and selling yesterday, after the corporate reported bigger than expected second-quarter losses.

The Huge Learn

​The Bayeux Tapestry recollects a defining second in England’s historical past. After greater than 900 years it’s set to return to Britain in an settlement hailed as proof of warming Anglo-French ties. But the story behind the landmark cultural deal is itself a saga, solely coming to fruition after diplomatic work on the highest degree. Right here’s how the Bayeux Tapestry has come to embody soft power at work.

We’re additionally studying . . . 

• Information belief points: Trump’s nominee for Bureau of Labor Statistics chief, EJ Antoni, has sparked alarm amongst buyers frightened concerning the politicisation of essential market information.

• UN plastics treaty: Obstruction ways are delaying efforts in the direction of a legally binding agreement to deal with plastic air pollution, writes Pilita Clark.

• Diplomatic thaw: Bettering relations between London and Beijing have energised British businesses on the earth’s second-largest economic system.

• Gaza rift deepens: Two Israeli authorities ministers have lashed out at the head of the country’s army, as a spat between the nation’s political and navy management intensifies.

Chart of the day

Sunday will convey Bolivia’s most open election since 2006. Pollsters recommend the opposition has its greatest probability of successful in 20 years, as anger on the nation’s leftwing authorities reaches fever pitch. Thomas Graham reports from La Paz.

Take a break from the information . . . 

Meet the migrants who selected life within the Arctic. Regardless of life-threatening winters, a city of about 3,300 individuals thrives in Inuvik, Canada — full with the world’s northernmost mosque and an igloo-shaped church.