Wall Road titan John Paulson defends Trump’s tariff discuss

Good morning. In right this moment’s information:

However first, we begin with an unique interview with billionaire hedge fund supervisor John Paulson, who has brushed apart Wall Road worries that Donald Trump’s plans to lift tariffs will hurt the financial system and known as on the US to “decouple” from China.

“We’re not in the period of free trade,” Paulson instructed the Monetary Instances. “It’s very one-sided.”

Trump this month threatened to impose tariffs of 100 per cent on imports from international locations that shifted away from utilizing the greenback and has previously proposed a 60 per cent tariff on Chinese language items and 10 to twenty per cent duties on most different imports.

Paulson’s feedback distinction with remarks he made in April, when he described tariffs as a “blunt tool” to repair commerce imbalances and stated “we don’t want to decouple from China”.

Paulson, who made his fortune shorting the housing market earlier than it crashed in 2008, has been talked about as a attainable Treasury secretary if Trump wins November’s presidential election. Learn the complete interview.

And right here’s what I’m conserving tabs on right this moment and over the weekend:

• Quad summit: US President Joe Biden hosts the leaders of India, Japan and Australia tomorrow in his residence state of Delaware.

• 2024 election: The 2 presidential candidates are on account of file monetary disclosures to the Federal Election Fee masking August. The deadline comes a day after Kamala Harris appeared alongside Oprah Winfrey.

• Sri Lanka: The nation will maintain its first presidential election on Saturday since a political rebellion in 2022. The election is a three-way race.

• Motorsport: On Sunday, Singapore hosts the newest spherical of the F1 Grand Prix.

What lies forward for India after the primary 100 days of Prime Minister Narendra Modi’s third time period? Be a part of FT, Nikkei Asia and Asia Society consultants for a webinar on October 10 and put your inquiries to our panel now. Register at no cost. 

5 extra high tales

1. The S&P 500 closed at a report excessive yesterday as traders wager the Federal Reserve’s jumbo half-point rate of interest lower would assist ship a comfortable touchdown for the US financial system. The US good points capped a worldwide rally that additionally featured robust good points in European and Asian markets. Learn the complete markets replace.

2. Israeli forces struck targets alongside Lebanon’s southern border yesterday as Hizbollah’s chief stated Israel had crossed “all red lines” with this week’s mass detonations of communication units. Hassan Nasrallah known as the assaults, which killed 32 folks and injured 1000’s, a “major security and military blow”.

3. The Financial institution of Japan has opted to carry short-term rates of interest at 0.25 per cent however warned that “high uncertainties” stay within the outlook for exercise and costs. The yen held regular as merchants awaited the result of a press convention by governor Kazuo Ueda. Leo Lewis is following developments in Tokyo.

4. Nike chief govt John Donahoe will step down subsequent month in an abrupt management change on the world’s largest sportswear maker. Shares rose after the corporate appointed Elliott Hill, a Nike veteran who beforehand served as president of client market earlier than retiring in 2020, as Donahoe’s alternative. Right here’s extra on Hill who joined Nike as an intern greater than three many years in the past.

5. Brazil’s Supreme Court docket will impose a high-quality of about $1mn per day on Elon Musk’s X and his satellite tv for pc web supplier Starlink after service to the social media platform was quickly restored despite a court-ordered ban. Customers have been capable of entry the service after X switched its third-party cloud supplier.

How properly did you retain up with the information this week? Take our quiz.

Information in-depth

This week, Amazon instructed greater than 300,000 of its company workers that they have to return to the workplace 5 days per week from the beginning of 2025. By doing so, chief govt Andy Jassy joins leaders together with Jamie Dimon of JPMorgan Chase and Elon Musk at Tesla in pushing for a full return to the workplace. It additionally places Amazon at odds with the softer strategy taken by most of its tech rivals.

We’re additionally studying . . . 

• Enterprise lunches: Lack of time, elbow room and alcohol have created an issue on the planet’s enterprise capitals.

• São Paulo politics: A rightwing self-help guru and influencer has electrified the race to turn into mayor of the western hemisphere’s greatest metropolis.

• Degrowth: Current critiques say the sphere, which requires radical financial change to save lots of the planet, provides few tenable coverage options, writes Soumaya Keynes.

Chart of the day

Expectations of speedy rate of interest cuts by the Federal Reserve have been the primary driver of gold’s enormous rally this 12 months, in keeping with analysts. Decrease borrowing prices enhance the attraction of property with no yield, corresponding to bullion, and are additionally prone to weigh on the greenback, during which gold is denominated. However robust demand from jewellers and central banks have additionally helped buoy costs.

Take a break from the information

The success of India’s cricket premier league has spawned a flurry of recent fast-paced competitions all over the world designed to attract in untapped audiences. However can all of them survive?

Extra contributions from Tee Zhuo