Trump shifts tone on Ukraine ahead of ‘major’ announcement

Good morning and welcome back to the working week. Here’s what we have for you today:

• Trump promises Patriot missiles for Ukraine

• Bitcoin surges above $120,000

• Investment banking’s bad run

• Gaza “death traps”

US President Donald Trump plans to send Ukraine a number of Patriot air defence missile systems to help the country’s defences against Russian attacks. Here’s what you need to know.

How will the deal work? In his most explicit comments yet, Trump yesterday said European countries would pay for the weapons and transfer them to Ukraine. He did not say how many systems the US would provide but Ukrainian President Volodymyr Zelenskyy has been pleading for months with Trump to sell his war-battered nation 10 Patriot air defence systems and interceptor missiles. Last week, Zelenskyy said that Kyiv had secured agreements with Germany and Norway for the purchase of three Patriot systems from the US. Trump yesterday told reporters: “I haven’t agreed on the number yet, but they are going to have some, because they do need protection.”

Why it matters: The US-made Patriot systems are some of Washington’s most advanced air defence weapons and a key part of Ukraine’s defences against Russian attacks. They are the only air defence weapon in Kyiv’s arsenal capable of downing Russia’s hypersonic ballistic missiles. Russia has escalated its air war against Ukraine in recent weeks, launching record numbers of Iran-designed suicide drones and cruise and ballistic missiles. Trump is due to meet Nato’s secretary-general Mark Rutte at the White House today and Keith Kellogg, Trump’s special envoy for Ukraine, has arrived in Kyiv for a meeting with Zelenskyy. Trump last week promised a “major announcement” on Russia today. Read more ahead of today’s announcement.

Here’s what else I’m keeping tabs on today:

• Hegseth-Pistorius meeting: Germany’s defence minister has told European defence manufacturers to “deliver” in an FT interview ahead of his meeting with the US defence secretary in Washington later.

• Economic data: Brazil’s central bank releases results of a weekly economic survey with more than 100 financial institutions. This will include forecasts for GDP, interest rates and inflation while Argentina publishes the June consumer price index.

• Bastille Day: France celebrates its national day.

Five more top stories

1. Bitcoin hit a record $120,000 earlier today as US lawmakers prepared to consider a number of bills aimed at creating clearer regulatory frameworks for digital assets. The world’s largest cryptocurrency climbed 2.5 per cent to trade at a new high of $122,105 and has risen more than 10 per cent in the past seven days. Here’s more on what has been dubbed “crypto week”.

• More crypto news: Cryptocurrency companies are racing to expand into traditional banking in the US, as they seek to capitalise on a friendlier regulatory environment under President Donald Trump and become more embedded in the financial system.

2. Chinese exports rose 5.8 per cent year on year in dollar terms in June, beating expectations as companies used a tariff truce with the US to ship goods ahead of an August deadline for a more definitive deal. The strong trade figures came ahead of this week’s GDP data for the second quarter that is also expected to please Beijing.

3. European stocks slipped as investors responded to Donald Trump’s weekend threat of 30 per cent tariffs on the EU, the latest escalation of his trade war. EU trade ministers are meeting in Brussels today to discuss their response to the US president’s threat which, he said, will come into force on August 1.

4. Fuel control switches in Boeing aeroplanes do not pose a safety issue, the US aviation regulator said. The Federal Aviation Administration’s notice to international counterparts followed a preliminary report by Indian authorities that the engines of the Boeing Dreamliner involved in a fatal Air India crash last month cut off shortly after take-off.

5. International archaeologists and forensic experts will begin digging at the site of a notorious Irish mother and baby home today to try to retrieve the remains of 796 babies and young children believed to be buried there. The operation will lay bare one of the most painful and shame-filled chapters in Ireland’s history.

News in-depth

Investment banking is on course to extend a record streak of underperformance, supplying less than a quarter of Wall Street revenues at the biggest US banks for the 14th quarter in a row. Traders are due to come to the rescue of their advisory colleagues once again when the banks report second-quarter results this week.

​​We’re also reading . . . 

• Zohran Mamdani: The main lesson to take from the populist’s victory, writes Rana Foroohar, is to make America affordable again.

• Middle East markets: Israel’s stunning stock rally suggests the country is cementing its status as the regional economic superpower, writes Ruchir Sharma.

• Meta: Mark Zuckerberg will this week testify in a Delaware trial that has become a test of board culpability over corporate scandals.

• Argentina: President Javier Milei hopes a strong peso will help kill inflation — a risky bet, writes Michael Stott.

Chart of the day

The Gaza Humanitarian Foundation has been championed by the US and Israel as a lifeline for the strip’s 2.1mn population since its launch in May. But testimony, satellite imagery and verified video compiled by the FT show how the aid scheme has forced hungry Palestinians into a dangerous journey from which many never return.

Take a break from the news

What is more satisfying than a story of triumph over adversity by wholesome people? A takedown. These two strands came together in a much-discussed investigation by The Observer newspaper last weekend into author Raynor Winn’s memoir, The Salt Path, which was adapted into a film starring Gillian Anderson and Jason Isaacs. Emma Jacobs picks up the story.