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Good morning and welcome back to FirstFT, your early morning business briefing. Here’s what we’re covering today:

• A plane crash near Ahmedabad airport in India

• China’s control of the rare earths market

• A sharp rise in oil prices

• Stablecoins going mainstream

• And the boom in sports tourism

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We start with an exclusive story about China’s control of rare earths, the critical minerals that are widely used in electronics, fighter jets, electric motor vehicles and wind turbines that were central to Washington-Beijing talks this week in London.

What’s happening: Western companies say Beijing is demanding sensitive business information to secure rare earths as part of its export approval process. These include production details, images of products and facilities and confidential customer lists, according to multiple companies and official guidelines. “They ask for a lot of things, really a lot of things,” said a director whose company imports speaker parts to Italy from China.

Why it matters: The extensive requirements have raised concerns about potential misuse of data and the exposure of trade secrets, with some companies in sensitive industries finding it difficult to comply with or even apply for the export licences. China has significant leverage as it dominates the sector. China introduced the stricter controls in early April as tensions with the US ratcheted higher but has not said whether it will abandon them as part of the framework agreement with the US.

• China is winning: Beijing has used rare earth controls to beat Trump in the first skirmishes of the trade war, writes Alan Beattie.

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

• Air India plane crash: A flight to London Gatwick airport has crashed in Ahmedabad in western India shortly after take-off. Here’s the latest.

• Economic data: The US publishes May producer price index inflation data a day after it was confirmed that the annual consumer price index rose less than expected in May.

• Companies: Adobe is expected to report a rise in second-quarter revenue thanks to strong demand for its artificial intelligence-integrated photography, illustration and video software. BlackRock hosts an investor day in New York.

• Congress: New York governor Kathy Hochul, Minnesota governor Tim Walz and Illinois governor JB Pritzker testify before the House oversight committee on their policies regarding undocumented migrants.

The FT will host its annual Future of Asset Management North America event in October with senior executives and leading asset managers attending. Find out more.

Five more top stories

1. Oil prices jumped yesterday amid fears of an escalation in Middle East tensions, after the US ordered dependants of service members in parts of the region to leave. The rise in crude prices came hours after Trump said he was now “less confident” of a nuclear deal with Iran.

2. The board of the Fulbright Program has resigned in protest at what it has described as political interference from the Trump administration. Political appointees at the state department had cancelled Fulbright scholarships for dozens of academics and students, mainly on the basis of their research topics, people familiar with the matter said. Here’s more from the board’s statement.

3. The Pentagon has launched a review of the 2021 Aukus nuclear submarine deal with the UK and Australia to determine whether to scrap the project, according to people familiar with the matter. The move has triggered anxiety in London and Canberra, as ending the agreement would destroy a pillar of security co-operation between the allies.

4. A jury convicted Harvey Weinstein of one sexual assault charge but acquitted him of another, delivering a split verdict in his retrial on sexual assault accusations spanning his career as a Hollywood producer. The jurors have not yet reached a decision on a third charge of rape against the former Miramax studio chief. Jurors will reconvene today to break the deadlock.

5. City of London groups are pushing staff to return to the office more frequently, with Deutsche Bank, UBS, Peel Hunt and others tightening work from home rules. The shift to more office attendance and a return to pre-pandemic working patterns is at the centre of a fight for office space and talent.

• Apollo: The investment group is delaying recruiting junior bankers until next year, after tensions between banks and the private equity sector over securing young talent.

Today’s big read

Stablecoins were created to boost trading in cryptocurrency markets, enabling buying and selling without the use of a bank. Until recently, ease of use and anonymity made them a de facto currency reserve for crypto traders and a conduit for crime including drug trafficking and money laundering. But helped by the return of Donald Trump to the White House stablecoins are becoming increasingly mainstream — a development that could have profound implications for the global financial system.

We’re also reading . . . 

• The dollar: The weakening US currency has turned fund managers everywhere into currency traders, writes Katie Martin — whether they like it or not.

• UK spending review: After nearly a year, Labour has made its big play, writes Robert Shrimsley. So why are some of us not immediately convinced?

• AI sycophants: OpenAI, Google DeepMind and Anthropic are all stepping up efforts to tackle a growing problem: chatbots telling people what they want to hear.

• Starbucks: The coffee shop chain has promised “the biggest human capital investment in connection” in its history. Will its big bet on baristas pay off?

Chart of the day 

Investors are pouring money into silver and platinum as they seek “gold alternatives” amid growing concerns that the haven is overvalued. Both metals are up more than 10 per cent this month.

Take a break from the news

From the Tour de France in Scotland to the Saudi Arabian Grand Prix, tourist boards are discovering the benefits of luring big-name sporting events from their traditional homes. Sports tourism is now one of the fastest-growing segments in travel. But will it last?

When President Trump announced his sweeping new tariffs this year, many trade law experts were startled. Typically, presidents don’t have the authority to impose broad tariffs with a snap of their fingers.

But Trump’s advisors have an unusual new legal theory. They say that as long as there’s a national emergency of some kind, Trump may be able to create whatever tariffs he wants. This is a creative interpretation of a 1977 law called the International Emergency Economic Powers Act, or IEEPA. To justify his latest tariffs, the president declared national emergencies involving illegal immigration, the fentanyl crisis, and the trade deficit.

But no president has ever tried to use the law in this way.

Now, the fate of Trump’s tariffs — and the creative legal theory behind them — lies with the courts. About a dozen lawsuits have challenged his tariffs, claiming that they are unlawful and possibly even unconstitutional. And some judges have started to agree.

On today’s show: What are the President’s powers when it comes to tariffs? Where do they come from? What are their limits? And, what will be the fate of Trump’s tariffs?

For more on Trump’s tariffs:

This episode was hosted by Willa Rubin and Jeff Guo. It was produced by Sam Yellowhorse Kesler and edited by Jess Jiang. It was fact-checked by Sierra Juarez and engineered by Harry Paul with an assist from Gilly Moon. Alex Goldmark is Planet Money‘s executive producer.

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Music: Universal Production Music – “Nonsense,” “Pop and Lock,” and “Pulse Hop”

BBC

‘Days out for children’

Hoping for funds

Basmati rice exporters have sustained earnings this marketing year (starting October 2024) on the back of higher export volumes, despite a sharp fall in contracted rates and the absence of a minimum export price (MEP).

Trade sources indicate that May’s average basmati export price fell over 23 per cent to $831/tonne from $1,080 a year ago.

Though the season began with a 20 per cent drop in October 2024 to $977/tonne from $1,226 a year ago, prices have fallen 15 per cent in the last eight months.

“In 2007-08, the annual average basmati export price jumped over 53 per cent to $907/tonne. It crossed $1,000 for the first time the very next year.

“Since then, there’s been little variation, except in 2014-15 when the average rate exceeded $1,220/tonne,” said a veteran exporter.

Trade policy expert S Chandrasekaran stressed the need for deeper introspection into the second-generation basmati rice reforms.

policy reforms

“We must seriously deliberate how to accelerate, navigate, and benefit from the global market scaling while managing quality and authenticity,” he stated.

He said revisiting the current, quarter-century-old basmati rice export standards might be necessary.

According to Dinesh Chhatra, COO of GRM Overseas, last year’s high demand, driven by the Russia-Ukraine war, significantly boosted prices of the aromatic rice.

However, despite robust buying this year due to anticipated similar demand, prices are now depressed. This is largely because of last year’s bumper kharif output.

While some experts advocate maintaining a price standard for Indian basmati, Chhatra believes retaining an MEP could have reduced export volumes.

He noted that some basmati consignments sold well above the average rate. The government removed the $950/tonne MEP on basmati rice in September last year, following exporters’ requests for a reduction.

Official data show basmati export volume jumped 16 per cent to 3.99 million tonnes (mt) during October 2024-April 2025, up from 3.43 mt a year ago.

Basmati remains one of India’s top three agri-export items over the past few decades.

Published on June 11, 2025

India places a high priority to its relations with the European Union, the centrepiece of which is the Free Trade Agreement negotiations that are making very good progress, External Affairs Minister S Jaishankar said here on Wednesday.

During a conversation with The Financial Times Brussels Bureau Chief Henry Foy at the German Marshall Fund (GMF) Forum, the external affairs minister expressed confidence that the year-end timeline set for the completion of the India-EU Free Trade Agreement (FTA) seems “feasible” following his in-depth talks with EU officials this week.

He also highlighted the strength of the two-way relationship that goes beyond trade to cover aspects of defence and security, mobility, talent flows and education.
“I would give it (India-EU ties) pretty high priority… right now you catch us at a very important moment,” said Jaishankar.

“We had the (EU) College of Commissioners, very soon after they came into office, visit India collectively. We know that’s a very unusual and very positive step, and we are really looking at deepening our ties,” he said.

“So, the centrepiece is the FTA, which has been under negotiation for some time now but everything I have heard… I think we are making very good progress,” he added. Against the backdrop of his talks earlier on Wednesday with MaroS Šefčovič, the EU Commissioner for Trade and Economic Security, Jaishankar was asked about the prospect of completing the FTA by the end of this year. “A lot has been done, and everything that I heard on this trip gives me the confidence that it’s within sight, that by the end of the year it is feasible to do this,” he said.

The conversation session at the high-profile forum covered a broad spectrum of issues governing India’s foreign policy perspectives, from its relations with the US and closer in its neighbourhood with China.

“We are conditioned to deal with situations and challenges, think it through for ourselves and essentially make decisions based on what capabilities we have and what we are able to leverage from the world. And that’s because we have never been an alliance partner. So, by the nature of our foreign policy structure, our strategic choices, we sort of have that mindset and approach,” Jaishankar said.

Contrasting this with Europe’s history and experiences, the minister noted that India is accustomed to dealing with shifting geopolitical realities and any “trans-Atlantic divergences” in outlooks that emerge.

“We are objective about it. We value our relations with the US, as we do with the EU, we will deal with each one on terms which are best for both of us,” he said.

On the issue of the Russia-Ukraine conflict, Jaishankar highlighted India’s stance favouring a negotiated settlement of differences.

He said: “We have felt from the start that even if two countries, two neighbours, have differences, even very deep differences, it cannot be settled by recourse to war. If war has started, you are not going to get a solution out of the battlefield. If you’re not going to get a solution out of the battlefield, then the answer is to negotiate.

“And if you are going to negotiate, it makes sense to negotiate directly, rather than through very convoluted signalling. So that’s been our position. It wasn’t necessarily widely accepted in 2022, but I think a lot of people have come around to that point of view right now… the United States today, under President Trump, also is an advocate of the fact that there has to be a negotiated solution.”

On China, Jaishankar reflected upon the “incredibly complicated matrix” with several different dimensions. Asked if the EU remains naive vis-a-vis China, he added: “I would point to a certain evolution in Europe’s position and stance, but I would also make the point that it’s a very differentiated picture.

“Not all of Europe is obviously moving at the same speed and on the same wavelength. So, there are some which have different views, some who are more hard-headed. I would make that distinction.”

Jaishankar has been holding a series of wide-ranging discussions in Brussels this week, including with European Commission President Ursula von der Leyen and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas for the first India-EU Strategic Dialogue.