Good morning. The EU plans to engage with countries hit by US tariffs. Advances in Chinese biotech are changing the world’s drug pipeline. And London is now the second-most expensive city for luxury spending. Listen to the day’s top stories.

The EU plans to team up with nations hit by Donald Trump’s tariffs, and will reach out to Canada and Japan for possible cooperation, people familiar said. It’s also delaying countermeasures against the US to allow more time for talks. In case you missed it, Trump threatened to slap a 30% levy on the bloc by August if they cannot negotiate better terms. German Chancellor Friedrich Merz said such a rate would hit exporters in his country “to the core.”

In markets, US and European stock futures slid and Asian shares edged lower amid the tariff tensions. Bitcoin breached $120,000 for the first time, with investor optimism increasing almost daily. And oil traders are on alert for Trump’s “major statement” on Russia later today.

British living standards are no higher than when Labour swept to power a year ago, highlighting the problems piling up for Keir Starmer as he struggles to contain the rise of the populist Reform party. Discretionary incomes have fallen 7.5% this year, according to Retail Economics. 

Trump will announce a new plan to arm Ukraine that may include offensive weapons, Axios reported. The US president earlier said he’s very disappointed with Vladimir Putin, who “talks nice” and then “bombs everybody in the evening.” And Emmanuel Macron plans to boost France’s annual defense budget to €64 billion by 2027 as he listed a wide array of threats to Europe. 

Allies of the US president are scrutinizing renovations at the Federal Reserve’s headquarters in Washington, DC as possible grounds to remove Jerome Powell. Deutsche Bank strategists warned Powell’s dismissal may spark a selloff in the US dollar and Treasuries.

Deep Dive: AI’s Coming for Your Job

UK businesses are dialing back on hiring for jobs likely to be affected by the rollout of AI, a McKinsey study found, suggesting the new technology is accentuating a slowdown in the nation’s labor market.

• The overall number of online job postings in the UK was down 31% in the three months to May from the same period in 2022.
• White-collar positions in tech or finance were reduced by 38%, almost twice the decline seen in other jobs.
• In some sectors, like professional services and IT, the number of job openings dropped even as businesses reported healthy growth rates.
• Vacancies in mathematics, mainly for data science and analytics roles, had the highest share of AI mentions in job descriptions and are down almost 50% from pre-pandemic levels, Indeed Hiring Lab figures showed. Real estate or education jobs that barely mention the technology grew over the period, the job-search website said.
  

The Big Take

Opinion

If AstraZeneca shifts its primary listing to New York, the UK should minimize the collateral damage by fostering a successor, Chris Hughes writes. The other priority must be to boost the pipeline of IPOs.

Before You Go

Source: Warner Bros. Pictures

Supersized haul. Superman opened at No. 1 this weekend, pulling in a better-than-expected $122 million in ticket sales in the US and Canada, and $217 million worldwide. It’s another win for Warner Bros., which bounced back in the second quarter on hits such as A Minecraft Movie and Sinners.

London is now the second-most expensive city for luxury spending, according to Julius Baer’s annual report. Singapore retained the top spot and Hong Kong slipped to third, while Monaco and Zurich rounded out the top five. The UK capital’s rank was bolstered by a jump in the cost of private education and business class flights.

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