Eric Trump opens door to political dynasty

Good morning and welcome back. On the final day of the working week here’s what we have for you:

• Eric Trump raises prospect of a political dynasty

• The private equity-insurance nexus

• Downside of coffee apps

• Test yourself in our weekly news quiz

Eric Trump, the 41-year-old son of the US president, said “the political path” for a family dynasty “would be an easy one”. In a wide-ranging interview with the Financial Times the co-executive of the Trump Organization also discussed his real estate dealings around the world and hit back at critics who say his family is seeking to profit from the presidency. Here are some of the highlights.

On succession: Asked whether 2024 will be the last election with a Trump on the ballot, Trump said: “I don’t know . . . Time will tell.” But if someone in the family decides to run, “the political path would be an easy one, meaning, I think I could do it”, he said, adding that “other members of our family could do it too”.

On crypto: Trump said the family embraced digital currencies after being shunned by traditional finance. He now describes it as a “very profitable venture” and a “perfect hedge” for their real estate portfolio. 

On profiting from the presidency: “If there’s one family that hasn’t profited off politics, it’s the Trump family.” Read the full the interview.

And here’s what we’re keeping tabs on today:

• Markets: The S&P 500 has rallied this week and is nearing a record high on hopes for Middle East peace, trade deals and US interest rate cuts.

• Central banks: The Bank for International Settlements holds its annual conference in Basel, while the US Federal Reserve publishes the results of its annual bank stress test. 

• Economic data: The Commerce Department releases its Personal Consumption Expenditures Price Index, a closely watched measure of inflation, and Brazil’s statistics agency publishes unemployment figures for the March-May quarter.

• Companies: Nike shares are expected to surge at the open of trading following comments from chief executive Elliott Hill on a call with analysts last night outlining his turnaround plan for the sportswear group.

• White House: Secretary of state Marco Rubio hosts the signing of a peace agreement between Rwanda and the Democratic Republic of Congo after the two countries agreed earlier this month to end decades of conflict.

Jeff Bezos’s three-day wedding is taking place in which city? Take our weekly news quiz.

Five more top stories

1. The US Treasury has called on Congress to scrap the foreign revenge tax provision in Trump’s flagship budget bill, reversing a plan that had spooked Wall Street. Treasury secretary Scott Bessent said the measure was no longer needed because he had secured concessions for US companies to the new OECD global minimum tax regime. A Senate vote on the bill could potentially come this weekend.

2. The US and China have signed a trade deal, says Donald Trump without providing any details. The agreement builds “an additional understanding” following talks between the two nations in Geneva last month. The agreement in Geneva involved significantly reducing tariffs on each other for 90 days while they tried to hammer out a comprehensive trade accord. Here’s more on what was agreed.

• More China news: Shares in Beijing-based smartphone maker Xiaomi hit a record high today after it said it received 200,000 pre-orders for its latest electric vehicle in three minutes.

3. One of Elon Musk’s top lieutenants has left his job at Tesla amid plunging sales and a pivot to autonomous driving, artificial intelligence and robotics. Omead Afshar, who was promoted to run sales and operations in North America and Europe last year, has left his role, according to two people familiar with the decision. Afshar’s departure comes at a difficult time for Tesla.

• More motor industry news: UK vehicle production collapsed in May to the lowest level since 1949.

• Tariffs on German cars: EU officials have warned Chancellor Friedrich Merz not to expect a UK-style carve-out for Germany’s car industry.

4. Heathrow has warned of a more “challenging” market for transatlantic flights triggered by economic uncertainty in the US. The UK’s biggest airport said it was seeing “early signs of softness” on business routes. Heathrow’s comments follow warnings from several major airlines this year about slowing demand from US travellers.

5. Anna Wintour is ending her nearly four-decade tenure as editor of US Vogue, during which she turned the magazine into a global fashion powerhouse and herself into one of the most influential figures in the industry. The British-born editor will retain control of Vogue globally and a senior role at its parent company, she told staff yesterday.

The Big Read

Turkey’s economy, once tipped to repeat the success of South Korea’s transformation, is in a rut. The country’s economic crisis has drained President Recep Tayyip Erdoğan’s popular support, jeopardising his geopolitical aspirations and plans to remain in power.

We’re also reading . . . 

Chart of the day 

Scientists said “heat domes” and related atmospheric events behind extreme weather in the US and Europe this week had almost tripled in strength and duration since the 1950s. Temperatures passed 40C in parts of the US as a so-called heat dome took hold across eastern and central states. Meanwhile, parts of New Mexico and Texas were on high alert for flash flooding. Read more on the heat dome phenomenon.

Take a break from the news

Do queues in coffee shops feel longer nowadays? Increasingly, chains are turning to mobile ordering through a new wave of apps to ensure people can skip the line for their caffeine shot. But is it worth it? Claer Barrett examines the trade-offs to downloading coffee apps.