European corporate giants, including German carmaker Mercedes Benz and French luxury group LVMH, are leading a rearguard action to blunt the bloc’s response to US President Donald Trump’s proposed sanctions. In a bid to head off a transatlantic trade war, some executives have been holding back-channel meetings with US officials to pursue their own interests, we’re told. 

European efforts to tone down the risk of a full-blown trade war unfolded as a top Chinese official suggested there’s reason to optimistic about ties between the world’s two biggest economies. Both the Chinese and the Americans are hoping for a “friendly, good” relationship between their countries, and politicians are expected to heed the will of the people, said Liu Jianchao, head of the Communist Party’s International Department. 

For its part, the Trump administration moved to close loopholes that have allowed Chinese trade to avoid tariffs. Its deal with Vietnam suggested there’s not much room to further cut levies on Beijing. --Jonathan Tirone

What You Need to Know Today

BlackRock is considering a sale of its stake in the leasing rights to Saudi Aramco’s natural-gas pipeline network back to the energy giant. People familiar with the potential deal said talks between the asset manager and Aramco are continuing. 
The US investor could weigh other options for the pipeline if the discussions fail to lead to an agreement. 

A key US jobs report dropped expectations of a July interest rate cut by the Federal Reserve to zero, as stronger-than-expected payroll gains means monetary policymakers may not be able relent just yet on inflation risks. Read the full market blow-by-blow, by clicking here to follow our live ticker. 

Blistering heat continues to blanket much of Europe, sparking wildfires and testing social services. While many countries in the west of the region have suffered searing temperatures for weeks, the worst of the heat is shifting toward central and southeastern Europe, with parts of Austria and Serbia bracing for highs of 36C (97F) to 38C. Read our explainer about how dangerously high temperatures are becoming more common, putting more people at risk of heat stress

Pedestrians at a bus stop during a heat wave in Marseille, France Photographer: Jeremy Suyker/Bloomberg

Like podcasts? We’ve two fresh ones on deck. On this episode of Trillions, Joel Weber and Eric Balchunas look at the recent flurry of futuristic theme ETFs, their prospects for success and how to do due diligence on them. Then, on this week’s In the City, host Allegra Stratton is joined by Bloomberg Opinion columnist Marcus Ashworth and European real estate reporter Damian Shepherd to examine the UK housing market’s slowdown — and what might come next.

Switzerland and Germany have agreed to jointly purchase multiple ground-based air defense systems as part of the European Sky Shield Initiative, in a push by the two countries to ramp up collaboration in defense procurement. The agreement foresees the purchase of medium-range ground-based air defense from German manufacturer Diehl, according to a Swiss government statement. Negotiations with the manufacturer are largely completed and the contract is expected to be signed in coming weeks.

A German IRIS-T air defense system. Photographer: Daniel Bockwoldt/Getty Images

Value investing has long been out of favor in US stocks and last quarter was no different, as an index of beaten-down shares badly trailed the broader market’s furious rally. But it was also a time to shine for stock pickers focusing on downtrodden companies. Around 63% of active managers investing in cheap large-cap stocks outperformed their benchmarks in the second quarter, the best showing since the depths of the pandemic in 2020, data compiled by Jefferies show.

Notting Hill keeps giving London diners reasons to come back and feast. The neighborhood, internationally famous for its annual carnival, Portobello Road antiques market and that eponymous movie, has more recently become known as one of the city’s top dining areas. Now, the duo behind Dorian, Chris D’Sylva and chef Max Coen, are following a different formula. Their newest spot is Eel Sushi Bar, located right across the street from their starry freewheeling bistro.

At Eel Sushi Bar, a nigiri selection includes Cornish squid; akami (lean tuna); hamachi; and kamatoro, the fatty tuna collar also known as “wagyu of the sea.”

What You’ll Need to Know Tomorrow

For Your Commute

Young South Africans known as “born frees” were supposed to be the first generation to access homeownership without restrictions. But new obstacles stand in the way.

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