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Good morning and welcome back. In today’s newsletter:
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Trump and Zelenskyy’s ‘shouting match’
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Rare-earth shares in a rally
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Chinese investment into Europe slows
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Companies slam new delay to EU deforestation law
We start the day with an exclusive story. Donald Trump urged Volodymyr Zelenskyy to accept Russia’s terms for ending its war in a White House meeting on Friday, warning that Vladimir Putin had said he would “destroy” Ukraine if it did not agree.
What happened: The meeting between the US and Ukrainian presidents descended many times into a “shouting match”, people familiar with the matter said. They added that the US president tossed aside maps of the frontline in Ukraine, insisted Zelenskyy surrender the entire Donbas region to Putin and repeatedly echoed talking points the Russian leader had made in their call a day earlier.
‘He will destroy you’: According to a European official with knowledge of the meeting, Trump said to Zelenskyy that Putin had told him the conflict was a “special operation, not even a war”, adding that the Ukrainian leader needed to cut a deal or face destruction. The official said that Trump told Zelenskyy he was losing the war, warning: “If [Putin] wants it, he will destroy you.” Read more about the White House talks.
Here’s what else we’re keeping tabs on today:
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Economic data: The EU updates its second-quarter GDP estimate.
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EU: The bloc’s foreign ministers convene in Brussels to discuss the Ukraine war. Meanwhile in Slovenia, Prime Minister Robert Golob hosts the annual gathering of nine Mediterranean EU states, with French President Emmanuel Macron expected to attend.
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Thyssenkrupp: The German conglomerate will list its submarine manufacturing business in Frankfurt today as it tries to seize upon the surge in defence stocks.
Five more top stories
1. Investors are racing to back rare-earth companies, sending their shares to record highs, as Trump’s attempt to break China’s stranglehold on the supply of critical minerals electrifies the once sleepy sector. Here are the companies riding the rare-earths rally.
2. Gucci owner Kering has agreed a €4bn deal to sell its beauty business to L’Oréal as its chief executive Luca de Meo seeks to revitalise the struggling luxury group. The sale represents a U-turn by the Paris-listed company, which had previously sought to grow its beauty business in-house. Read more for details.
3. China’s investment push into Europe has slowed due to a combination of trade tensions, political strains over Beijing’s support for Russia and the region’s relatively soft EV market. Read more on the deceleration of Chinese greenfield projects into the region.
4. The European Commission is jeopardising its own green agenda by proposing to delay its anti-deforestation law for a second time, large food and consumer goods companies have said. The groups already have spent millions preparing for the law. Read more on what’s causing the delay.
5. Brexit will be partly blamed by the UK’s fiscal watchdog for the gaping hole in the public finances. The Office for Budget Responsibility will next month downgrade its UK productivity growth estimates and identify Britain’s departure from the EU among the contributory factors, officials said.
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Budget narrative: The UK government must explain why tax reform is necessary and desirable for fiscal sustainability, writes Jonathan Portes, professor of economics and public policy at King’s College London.
The Big Read
© Allison Joyce/AP
Since the start of Trump’s second term, hundreds of US federal websites have scrubbed text related to climate change, while more than a hundred have been taken down entirely. Experts warn of the effects on weather forecasting and disaster management. Eva Xiao and Jana Tauschinski catalogue the costs of Trump’s climate censorship.
We’re also reading . . .
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Gen Z protests: Students the world over are demanding political change. But events in Madagascar highlight the powers and flaws of youth seeking a quick fix.
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A heist at the Louvre: French police are searching for four suspects believed to have stolen royal jewellery from the Paris museum.
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Dietary sensitivities: Early exposure to peanuts is found to reduce food allergy risks in children, research shows.
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‘Doom and gloom’: Oatly’s chief executive has blamed falling US sales partly on negative talk around climate change.
Chart of the day
Tesla has built a leading position in the UK’s mega battery market, increasing its role in Britain’s efforts to shift away from fossil fuels. The group led by Elon Musk supplies large-scale batteries to plant developers and also trades the power generated by them. Its batteries perform the best in the market in terms of revenue.
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Take a break from the news . . .
The Danish town of Billund is home to about 7,000 people, most of whom owe their living, one way or another, to Lego. Oliver Berry visited the birthplace of the little bricks — and saw “what Willy Wonka’s factory might have looked like if he’d had a penchant for plastic rather than chocolate”.
Lego House comprises 21 gigantic blocks, so that it resembles a pile of Lego bricks
