Rachel Reeves promises to break down EU trade barriers and organize an investment summit

Good morning. To start the week, we have an exclusive interview with Rachel Reeves, who may become the first woman chancellor of the UK on July 5.

Reeves told the Financial Times that if Labor wins the general election, it will seek to break down EU trade barriers and secure billions of pounds through an early international investment summit.

The shadow chancellor signaled ambitious efforts to reconsider parts of Boris Johnson’s Brexit deal, including seeking closer alignment with EU rules in areas such as the chemicals sector and better deals for workers in the City of London.

“We would like to improve our trading relationship with Europe and strike trade deals around the world,” she said, vowing that the incoming Labor government would “reset” Britain’s global image.

Read her interview with Sam Fleming and George Parker in London. More on the opposition’s plans below.

• Carbon tax: Labor is exploring how to realign Britain’s carbon emissions regime with the EU if it wins next month’s general election, party figures say.

• North Sea Tax: Oil and gas executives warn the party’s pledge to end allocations could kill investment in the basin.

• Doctors’ salary: Shadow health secretary Wes Streeting has promised to meet junior doctors “on day one”, calling on them to call off a five-day strike due to take place just before the July 4 election.

Reeves will host a breakfast with his “shadow” UK Infrastructure Council today. Business leaders from Santander, Lloyds, M&G and BlackRock are expected to attend. Here’s what else I’m watching today:

• Economic data: Rightmove publishes its UK house price index, the EU publishes first quarter wages and jobs data and Italy publishes its May consumer price index.

• EU: Leaders from the bloc’s 27 member states will host a private dinner in Brussels to support Ursula von der Leyen for a second five-year term as president of the European Commission.

• Cannes Lions: The annual advertising awards in the south of France are launching with a new category that celebrates humor in advertising campaigns, breaking down the industry’s anxiety about artificial intelligence.

• Elections in France: The campaign officially begins with the left eager to strengthen an alliance shaken by the purge of moderates in the far-left France Insoumise party.

Europe editor Ben Hall discussed high stakes on Emmanuel Macron’s gambling in the polls in Saturday’s Europe Express. The newsletter will focus on the French elections over the next few weekends and will be available in free online editions in English and English en francais. Do not miss it!

The next five most important stories

1. Exclusive: Global defense groups are recruiting at the fastest pace since the end of the Cold War as the industry tries to fulfill order books that are close to record highs. A Financial Times survey of the hiring plans of 20 large and mid-sized U.S. and European defense and aerospace companies found they want to hire tens of thousands of workers this year.

2. Exclusive: Apple supplier TDK announced breakthrough in solid-state battery production, predicting that the new material will result in significant increases in device performance. The new material can squeeze about 100 times more energy into the same space than the current mass-produced battery from the Japanese company. David Keohane and Harry Dempsey have more details.

3. Deutsche Bank is counting on an aggressive recruitment wave that will begin to increase revenues and reduce its dependence on bond trading. Since the beginning of 2023, Germany’s largest lender has hired 125 investment bankers, including from Credit Suisse, of which 75 have joined as managing directors or directors. Deutsche’s purchase of the British broker Numis, completed in October, resulted in the employment of another 300 employees. More about Deutsche’s strategy here.

4. Ukraine received the support of the peace summit on its territorial integrity and part of his vision to end the Russian invasion, but the major countries refused to sign up. Eighty of the 92 countries participating in the event in Switzerland yesterday signed a statement supporting three points of Ukraine’s previously published 10-point peace plan. Here are the countries that abstained.

• Russian gas: Last month, European gas imports from Russia exceeded U.S. supplies for the first time in almost two years, despite the region’s efforts to wean itself off Russian fossil fuels.

5. Benjamin Netanyahu condemned the Israeli army’s plan for a “tactical pause” near the Gaza crossing to help distribute aid. The prime minister yesterday called the proposal “unacceptable” as internal criticism of his handling of the nine-month war with Hamas intensified after the death of eight Israeli soldiers in Rafah. Read the whole story.

Great reading

Joe Biden took office threatening to turn Saudi Arabia into a pariah state. In 2022, the US president was furious, threatening “consequences” after deep cuts in the kingdom’s oil production caught US officials off guard ahead of the midterm elections. But within months, relations between the two countries blossomed in the volatile Middle East. Officials now describe Riyad as one of Washington’s most important global partners. The dramatic change in tone is a reflection of how Biden’s foreign policy has been driven by events, not ideology.

We read too. . .

• Polls and markets: Neither a strong majority nor political labels matter much for the economy and financial markets, writes Ruchir Sharma, just new faces.

• Wall Street: As dissatisfaction in junior positions declines, senior bankers also face increasing pressure from rising workloads and intense competition, writes Sujeet Indap.

• The Olympics is becoming ecological: The organizers of the Paris event have pledged to halve greenhouse gas emissions by cutting meat from athletes’ menus and building fewer new facilities.

• Elections in France: Who is Jean-Luc Mélenchon, the far-left instigator who ruthlessly purged senior colleagues on the day the country’s leftist parties formally began their alliance?

Chart of the day

Salaries for graduates of leading master’s degrees in finance are rising much faster for those working in financial services compared to other sectors, according to the latest FT ranking. The average salary for female graduates working in finance has increased to $91,000, slightly narrowing the pay gap with men to 8 percent, highlighting the still significant disparities in traditionally male-dominated careers.

Take a break from the news

This week, Naomi Campbell became the first model to be honored with a retrospective at the Victoria and Albert Museum – Naomi: In fashion. Ahead of the event, Campbell talks to the FT about a career and life that has all the ingredients of a blockbuster exhibition, namely longevity, drama and real struggle.

Additional contributions by Sophie Spiegelberger and Benjamin Wilhelm