FirstFT: Trump’s Gaza plan triggers international uproar

Good morning. We begin with the fallout from Donald Trump’s shock proposal for the US to “take over” Gaza. Additionally in at present’s e-newsletter:

• Honda and Nissan’s merger nears collapse

• Modi’s social gathering seeks Delhi election victory

• Wall Avenue quizzes US firms over tariff dangers

The White Home has sought to assuage fears of a protracted US navy intervention in Gaza, insisting Donald Trump’s plan for Washington to imagine management of the enclave didn’t essentially imply placing “boots on the ground”.

Press secretary Karoline Leavitt mentioned that whereas the president had made a “historic proposal for the United States to take over Gaza”, he had “not committed” to sending in US troops “just yet”.

Leavitt’s feedback come a day after Trump precipitated uproar within the US and around the globe with a proposal that the US ought to “take control” of the Palestinian enclave and that its complete inhabitants of two.2mn must be resettled.

Saudi Arabia, a key US ally within the Center East, mentioned its assist for an impartial Palestinian state was “firm and unwavering” and a situation for re-establishing diplomatic relations with Israel — an settlement that Trump was extensively anticipated to pursue.

The US president’s plan additionally provoked a hostile response from many in his personal social gathering, with some Republicans saying it strayed from his “America First” agenda.

• Trump’s grandiose Center East playbook: A clear sample has emerged within the historical past of the US president’s interventions within the Arab-Israeli battle.

• Opinion: The strain shall be on the Saudis and their Arab companions to persuade Trump of the calamity his scheme dangers unleashing, writes Andrew England.

Right here’s what else we’re protecting tabs on at present:

• Financial information: Vietnam and Thailand report January CPI inflation figures.

• Outcomes: Nippon Metal, Nikon, Amazon, Itochu, Suzuki Motor, AstraZeneca and Eli Lilly report earnings.

5 extra high tales

1. The $58bn merger between Honda and Nissan is on the snapping point as a majority of Nissan board members agreed to reject the deal after an try by Honda to show its rival into a totally owned subsidiary. Nissan executives had been greatly surprised by the brand new proposal, which was delivered as a “take it or leave it” supply.

2. Prime Minister Narendra Modi’s overtures to India’s beleaguered center class had been put to the take a look at yesterday as voters in Delhi went to the polls. The state legislature election came about after Modi’s authorities final week introduced tax breaks for middle-income earners amid a broader financial slowdown. Learn extra in regards to the vote.

3. The US Postal Service mentioned it could resume accepting packages from China only a day after asserting a suspension of the service. The state-backed postal operator has struggled to reply to Trump’s determination to place tariffs on lower-priced items, together with parcels from massive Chinese language ecommerce teams together with Temu and Shein.

• EU probes Shein: Brussels has launched an investigation into the China-founded ecommerce platform amid considerations that the corporate is violating European shopper safety guidelines by promoting unlawful merchandise.

4. UnitedHealth Group has raised considerations with the highest US securities regulator over a social media publish by activist investor Invoice Ackman, who claimed that the healthcare group may very well be inflating its earnings. Ackman has a protracted historical past of utilizing social media to make provocative and infrequently market-moving statements.

5. Jeff Bezos’s $10bn philanthropic fund has stopped backing the Science Based mostly Targets initiative, the main voluntary local weather customary setter that impacts how firms together with Apple and H&M can obtain a reputable “net zero” label. The transfer is seen because the billionaire’s newest effort to curry favour with Trump.

Information in-depth

Wall Avenue analysts are bombarding US firms with questions over how they’ll address Donald Trump’s commerce wars, in an early signal of how the president’s insurance policies are rippling by means of company America.

We’re additionally studying . . . 

• South-east Asia’s alternative: Funding is pouring into the area, writes Chris Miller, however extracting worth is proving more durable than anticipated.

• Mumbai potholes: An try to monsoon-proof town’s roads has left the streets in a state of disarray, writes Chris Kay.

• Netflix: The streaming group is betting on dwell occasions and an old-school addition to its line-up — the chat present — to spice up its nascent adverts enterprise.

Chart of the day

China has saved the renminbi’s trade charge with the greenback regular in its first official foreign money repair since Trump hit the nation with tariffs. Merchants had anticipated Beijing to weaken its foreign money in response to US levies and a stronger greenback. Right here’s how analysts interpreted yesterday’s repair.

Take a break from the information . . . 

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