NATO Summit and US-Europe Relations

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I'm Daniel Bach for the Wall Street Journal filling in for Lke Vargus And here is the AM dition of What's News, the top headlines, and business stories moving your world today Drama, intrigue and controversy. The World Cup served up all the storylines over the weekend. England beat co host Mexico to finally win in Mexico City. Five time champion Brazil went out, while France overcame the tactics of Paraguay that for many showed the dark side of the beautiful game But despite all that, it's President Trump who's dominating the headlines That's after FIFA decided to overturn a red card given to top scoring American player Fuller and Balligan, handed out in the last match. That decision came after a phone call from Trump to FIFA's president Bigan should be in the lineup tonight when the US men's team faces Belgium and Seattle for a chance to reach the quarterfinals. We all You know agree that was an unfair red card. Speaking ahead of the match, courtesy of FIFA, U.S. coach Mauritio Pacatino refused to say whether it was appropriate for President Trump to get involved 's not surpriseed me I came from a culture Argentina, Europe that football soaries is more than is a religion more than a religion, you know? People familiar with the matter said FIFA President Gianni Infantino agreed to look into it after Trump called, but didn't commit to overturning the red card Yesterday, it was rescinded under a provision that allows FIFA's disciplinary committee to exercise its discretion when reviewing sanctions from the Belgian perspective, their coach compared yesterday to April Foolsay and nodded to the fact, it appears to be the first time since nineteen sixty two that a red card handed out during a World Cup match didn't result in a player being suspended. In market news, stock futures are pointing to a positive start to the week in the US, with contracts tied to the NASDAQ one hundred up more than one percent While investors seem to have rekindled their enthusiasm for tech stocks, this week will bring a number of tests, including a NSAak listing for South Korean Chipstar SK Heinnx and earnings from its peer Samsung Plus Elon Musk's SpaceX jos the NASTAQ one hundred tomorrow Minutes from the first Fed interest rate meeting will also be scrutinized for clues about how hawkish the central bank might be under new chair Kevin Warsh Meanwhile, oil prices continue to retreat. That's after OPAC and its allies agreed to boost output, raising the prospects of an oil glut as shipping traffic through the Strait of Hormuz gradually resumes Here's energy markarkets reporter Rebecca Fung Right now, we have a very sudden and probably temporary glut that they are too much oil at the sea But in the long run, analysts were telling us that it would take fifteen to eighteen months to refill the world's inventories which are right now at historical level of lows, but also it's just a way for OEC countries to get more income, frankly, because during the past four months or so, Hormuz is just effectively closed. So now that we're seeing traffic normalizing to about thirty to sixty ships a day We're seeing increasing amount of oil getting out. The latest data from this ship tracker company Rxa shows that in June, there are about four point seven million barrels a day coming out compared with two million barrels a day in May. So there is a recovery, but we're still not back to pre war levels and the world's oil inventories is still filling up and it would take OPEC Plus said late on Sunday that they will raise production to about one hundred eighty eight thousand barrels a day as of next month. UK budget airline EasyJet has finally agreed to a takeover bid from a US investment firm, Castle Lake, and a deal that could exceed seven billion dollars It was the fifth proposal from the Minneapolis based firm following weeks of courtship represents a twenty four percent premium to EasyJet's closing price on Friday It shares a rallying this morning, adding to a forty percent surge since Castleake made its interest public helping the airline recover losses triggered by the war in the Middle East And US electric vehicle sales are down twenty five percent so far this year, following the end of federal subsidies But industry analysts don't expect the slowdown to last. Autos reporter Steven Wilmont says that consumers have yet to develop trust in EV batteries That newfound knowledge of battery durability could be a game changer. We're used to the experience that our phones lose a lot of their battery life after a fairly short period of time. and I think people then assume the same will happen with EV's. and it's a reasonable expectation. And in fact, the early EVs like the Nissan Laf, which came out more than fifteen years ago, they did have quite poor battery longevity. But it's turning out that the latest EV's with their kind of more automotive grave batteries last as long as a combustion engine car basically. According to a test that's been done by a company called Recurrent, that after five years on the road, the average EV will still be able to drive up to ninety five percent of its original range Globally, EV's already make up fifteen percent of new car sales and are expected to form nearly a quarter of the global market by twenty thirty Coming up, can NATO leaders put on a brave face and pretend there isn't growing distrust within the alliance? We look ahead tomorrow's summit just after the break Savvy investors understand consistent growth is built on scale, resilience and trust For more than sixty years, Medline has proven this, driven by an unrelenting commitment to their customers Today, Medline is proudly NASDAq listed and is the largest provider of medical surgical products and supply chain solutions serving all points of care. With a focus on what healthcare needs next, Medline strives to make healthcare run better See how Medline is woven throughout healthcare and learn more at medline. com. President Trump will come face to face with a host of European and Western leaders this week at a NATO summit in Turkey, in what will be a critical test for the alliance But it will also mark an important moment in determining the broader relationship between the US and many of its traditional allies who've been alienated by Trump's policies The journalists Jill Parkinson, Drew Hinhaw and Dan Michaels write that Trump's threats on tariffs, drawing down military support, and seizing Greenland from Denmark have pushed European leaders to discuss the idea of a breakup as they feel they've reached the limits of so called flattery diplomacy. Seniororter Drew Hinshaot joins me with more re, you write that there have been these behind the scenes crisis meetings between European leaders about how to manage a relationship with the US and what the future might look like if there is a fracture or how to salvage it. What have those talks look like? They're quite candid in your reporting. That's right. You have these meetings where European prime ministers presidents are told to come alone, no aidS, don't even bring a phone. They meet behind closed doors. The idea is they should have a moment to speak candidly And in those discussions, some of them have been so almost like vent sessions about U. S that leaders have joked about calling it therapy night. You've seen them say that this strategy of placating Trump with flattery and concessions on issues like defense and trade It's not working, that normalcy in their view isn't coming back What is interesting to us is that several leaders have seen an example that they can turn to, which is Mark Carney of Canada, who is trying to build up sort of a dense web of defense and security connections with other countries around the world to avoid being overly reliant on America. And it's an example that European leaders in these kind very sensitive closed door sessions have turned to and cightited as a direction of travel that they can follow. And so what if leaders floated on how to save this relationship or how to decouple from the US? What would that look like? Well, nobody wants to leave NATO or break it up. It's a marriage that neither side can afford to get a divorce. What you've seen European governments do is press the gas pedal on something like an experiment in deammericanization Governments from France to the Netherlands have quietly removed American technology from their system. They're adopting their own software and asking civil servants to not use Microsoft Teams or office. The European Union is launching hundreds of satellites into space so that its officials can discreetly discuss issues over satellite connections without using Elon Musk's Starlink network. You're seeing European defense companies pitch themselves as a sovereign alternative to platforms like the F thirty five, which some governments have tried to back out of because they feel the U. S. could in a conflict potentially or disactivate American weaponry. And just on that, obviously, there will be a lot under discussion at the summit this week in Turkey. The journal spoke to NATO chief Mark Rota last week. and he said European leaders and Canada have done a lot to meet President Trump's demands, including on military spending, But that one of their issues is on military production, and that is where the US may be key. There are some important talks to come. That's right. And one of the issues. One of the frictions here is that the war in Iran burned through a lot of the US's supply of long range and air defense missiles that Allies were counting on. And you've seen several governments move to domestically produce more of their own and not be reliant on the US for those systems, which on the one hand is a boon for the U. S, it's good. we don't want Allies to be over relliant. On the other hand, it is like a net negative perhaps for American defense contractors who for whom Europe has always been this Fantast OkayK, so it seems there are many ways in which European leaders are looking to decouple from the US that doesn't exactly set the scene for unity at this NATO summit. What are you expecting? This week's NATO summit is going to test how much leaders are able to put on a brave face and pretend that there is not growing mutual distrust within the ranks of the world's most powerful military alliance Militarily, it is hard to imagine any of these allies going their separate ways. Nobody wants to leave. But I think U S. threats to annex Canada, take Greenland They've forced European leaders to reassess the U.S as potentially not just unreliable, but possibly a threat. That's journal. Senior reporter, Drew Hinshaw Drew, than you for this. A pleasure. Thank you And that's it for What's News for this Monday morning. Today's show was produced by Hattie Mooyer, our supervising producer is Sandra Kilho And I'm Daniel Bach for the Wall Street Journal. We' be back tonight with a new show. And until then, thanks for listening this week What's on investors' minds as they look ahead Find out on the Markets podcast from Goldman Sachs A breakdown of market moves and macro signals in ten minutes or less The Markets podcast from Goldman Sachs. Listen now.