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The EU and US are poised to resolve a 17-year dispute over aircraft subsidies, lifting the threat of billions of dollars in punitive tariffs in a boost to transatlantic relations.
Diplomats and officials confirmed last night that two days of intensive negotiations had left both sides on the cusp of a deal on subsidy rules for Airbus and Boeing.
The agreement is set to be finalised today at Joe Biden’s first EU-US summit in Brussels and follows Monday’s Nato meeting which warned of growing unease over China’s military ambitions.
The deal would remove the threat of punitive tariffs on goods ranging from French wine to sugarcane molasses and is likely to take the form of a multiyear accord on subsidy limits, people briefed on the talks said.
The Biden administration has retained much more Trump policy than the EU would like, Alan Beattie writes in Trade Secrets. Sign up here to receive the newsletter in your inbox.
1. PwC plans 100,000-person hiring spree The audit and consulting group plans to increase its headcount by more than a third over the next five years. The plan, announced on Tuesday, is part of a $12bn investment in recruitment, training, technology and deals designed to capture a booming market for environmental, social and governance advice.
2. JPMorgan foresees investment banking boom Jamie Dimon on Monday predicted JPMorgan is on track for one of its strongest quarters for dealmaking fees. The bank’s chief executive said the current quarter could be one of the best “we’ve ever seen” for investment banking. Morgan Stanley boss James Gorman, speaking at the same conference as Dimon, had a tough message for his staff: “If you can go into a restaurant in New York City, you can come into the office and we want you in the office.”
3. Third Point builds stake in Vivendi The New York-based hedge fund run by Daniel Loeb has built a “substantial” stake in Vivendi, the media group controlled by French billionaire Vincent Bolloré. The investment comes as Vivendi hashes out a deal to sell a stake in Universal Music to Bill Ackman’s blank-cheque company. It is unclear whether Loeb supports the deal or not, but if he does not it would pit the two titans of the investing world against each other.
4. Hedge funds target 7% of assets in crypto in 5 years Hedge funds plan to significantly increase exposure to cryptocurrencies by 2026, a survey of 100 chief financial officers found, in a vote of confidence for digital assets despite recent price falls and plans for punitive capital rules.
5. UK and Australia agree post-Brexit trade deal The trade deal is expected to become a model for Britain’s post-Brexit commercial policy and pave the way for the UK to join the Comprehensive and Progressive Trans-Pacific Partnership. If the trade deal can be signed before the end of the year, it would mark the first big bilateral agreement entirely negotiated by the UK since it left the EU in January 2020.
It’s too soon to worry about wage inflation, or to predict a shift in the balance of power between labour and capital, writes Sarah O’Connor. Follow our live coronavirus blog here and sign up for our Coronavirus Business Update newsletter.
Fed meets Federal Reserve officials convene a two-day monetary policy meeting today with the question of whether to start tapering the central bank’s $120bn monthly bond-buying programme leading the agenda. Equities in Europe hit fresh highs ahead of the meeting.
Economic data The Labor Department is scheduled to release producer prices data for May, while the Commerce Department is likely to release retail sales data for the same month. The National Association of Home Builders/Wells Fargo Housing Market Index releases a June update.
Earnings Oracle is expected to post a rise in fourth-quarter revenue as hybrid work models strengthened demand for its cloud services.
Senate hearing Executives from Amazon and Google are expected to appear before the Senate Judiciary Committee’s antitrust committee, along with executives from Sonos. Sonos has accused the two tech giants of abusing their market power in the smart speaker market. (Reuters)
Harvey Weinstein hearing The former movie producer is expected at a delayed hearing in upstate New York to again oppose California’s effort to extradite him to face rape and sexual assault charges there. (AP)
Biden, Putin and the information warfare era As Joe Biden prepares to meet Vladimir Putin in Geneva tomorrow, efforts by Russia-linked groups to discredit Covid-19 vaccines are part of what the US sees as an intensified disinformation campaign. But few believe Moscow is likely to back off its cyber activities.
How the wealthiest Americans get away with paying no tax The US has long had two tax systems: one for people who work for a living, and another for the wealthy. Because the US only taxes capital gains upon the sale of an asset, wealthy individuals are able to accumulate vast fortunes completely untaxed until they decide to cash out, says former BlackRock executive Morris Pearl.
Can racial equality be built into the US cannabis industry? When Illinois legalised recreational cannabis in January 2020 it wanted to make sure that African Americans and Hispanics, groups that suffered more from the war on drugs than white people, benefited disproportionately from the legalisation. But despite promising to give “social equity applicants” an advantage in winning licences, Illinois still has no majority black-owned cannabis dispensaries, writes Patti Waldmier.
Who is Peru’s president in waiting? With his huge straw hat and giant yellow pencil, Pedro Castillo has emerged from nowhere to become one of the most recognisable figures in Latin American politics. He is poised to become Peru’s next president. But what will he do in government? No one knows.
France’s prodigal striker draws far-right fury Far-right fans have cast centre-forward Karim Benzema as the personification of the banlieues: of Algerian origin, the millionaire Real Madrid star grew up in one such poor, immigrant suburb of Lyon. His involvement in a “sextape” scandal in 2015 made him the target of racist attacks.
Five homes for football fans From a sprawling home in Portugal with its own pitch to a Roman apartment near Stadio Olimpico, check out these listings. More of a golfer? Here are above par properties close to prime courses, from Torrey Pines to Royal St George’s. For more, subscribe to our House & Home Unlocked newsletter.