You won’t believe what Trump just did – pleads not guilty to 37 federal charges!

Good morning. Donald Trump has pleaded not guilty to the first federal criminal charges brought against a former US president.

Trump was arraigned on a 37-count indictment related to his handling of classified documents. He was arrested upon arrival in federal court in Miami before leaving about two hours later.

The former president has accused prosecutors of conducting a “witch hunt” by bringing the case to his alleged failure to return sensitive national security records after leaving office. Jack Smith, the special counsel appointed by Attorney General Merrick Garland to oversee the investigations into the former president, was present in the courtroom, according to US media.

The federal case is the second time Trump has been indicted in less than a year. In April, he pleaded not guilty to 34 counts of falsifying business records in a case brought in state court by the Manhattan District Attorney.

The indictments have the potential to upend the 2024 presidential campaign, with Trump the clear favorite to win the Republican nomination, while deepening divisions among Americans.

Here’s what else I’m watching today:

• Monetary Policy: The US Federal Reserve is expected to forgo an interest rate hike today after 10 consecutive rate hikes since March 2022.

• Economic data : New Zealand’s first quarter GDP figures are due. Some economists expect the data to show the economy contracting for a second straight quarter, put it in recession. (Bloomberg)

• Partygate scandal: British MPs are ready to publish a “damning” report on the conduct of former Prime Minister Boris Johnson.

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Five other top stories

1. China unexpectedly lowered a policy rate and announced corporate tax breaks, amid signs that the post-Covid recovery in the world’s second-largest economy is running out of steam. Analysts said the move was likely flagged more substantial monetary easing and upcoming stimulus measures.

2. EY Global Managing Director Carmine Di Sibio has told partners he plans to retire next year, triggering a race for the head of the accounting and consulting firm. Di Sibio’s future has been uncertain since the failure of his plan – codenamed Project Everest – to spin off EY’s consulting arm and take it public.

3. The annual pace of inflation in the United States slowed last month to its lowest level in more than two years. consumer price index increased by 4% in one yearbut persistent price gains will keep pressure on the Federal Reserve to consider further interest rate hikes.

4. A four-week-old French start-up founded by a trio of ex-AI researchers from Meta and Google raised 105 million euros in The biggest fundraiser ever organized in Europe. Mistral AI’s first round of funding values ​​the Paris-based company at 240 million euros, underscoring the growing frenzy around AI.

5. UK retailer Bunzl is ‘reducing risk’ in its supply chain by moving part of its supply to China amid geopolitical concerns in Asia-Pacific. Managing Director Frank van Zanten said the company is diversifying its supply to countries such as Mexico, India, Vietnam and Malaysia.

deep dive

Nearly 1.4 million kilometers of metal-clad fiber criss-cross the world’s oceans, accelerating Internet traffic seamlessly around the globe. But driven by spy fears and geopolitical tensions, the undersea cable market risks splitting into eastern and western blocs, experts say. The FT explores how the United States is pushing China out of the infrastructure that underpins the internet in this visual story.

We also read. . .

• Defense expenditure: Russia’s invasion of Ukraine led to a sharp increase in military spending. Among the five biggest spenders in the world, the numbers are staggering.

• Janan Ganesha: If you were a demagogue, would you choose to operate in Britain or America?

• China-South Korea relations: Beijing has pressured South Korea to tighten ties with the United States and Japan. But now, Seoul pushes back.

Card of the day

The dire debt situation has become urgent and substantial relief is needed, writes Martin Wolf. Much of this will have to come, one way or another, from China. Today, remarkably, the bilateral debt of low-income countries to high-income Paris Club members has become less than half that owed to non-Paris Club countries, mainly China.

Take a break from the news

Books on large regions or large countries, be it Europe or China, often remain at the macroscopic and analytical level. But that of Ben Judah It’s Europe promises something different – “you want what politicians, pundits and political scientists can’t give you,” he wrote in his foreword. And Judah keeps that promise, writes FT’s Yuan Yang in this glowing review.

Additional contributions from Tee Zhuo and Gordon Smith