WeekDay AM: 10 Things you need to know this morning
Gibraltar deal, a rare earths accord, and why climate change can impact our gut

 
today's europe story

UK and Spain strike 'historic' Gibraltar deal

What happened
The UK and Spain have resolved their post-Brexit dispute and improved border movement by reaching a landmark agreement on Gibraltar. The UK called it the final major Brexit issue settled while Spain hailed it as the dismantling of "the last wall" in Europe.

Who said what
Foreign Secretary David Lammy said the deal was "a practical solution after years of uncertainty" and that the UK's commitment to Gibraltar "remains as solid as the Rock itself".

The deal will eliminate border checks for people and goods crossing into Gibraltar. Travellers at Gibraltar International Airport will undergo joint passport checks by officials from Gibraltar and Spain that will be "similar to the system in place for Eurostar passengers at London's St Pancras station", said the BBC. But Keir Starmer has been "accused of surrendering Gibraltar", said The Telegraph.

It would be "unfair to call it a problem of their own making" given 96% of voters in Gibraltar rejected Brexit in the 2016 referendum, said The Guardian. "Nevertheless, they are now experiencing its absurdities." Beyond political posturing, the main concerns "no longer seem to be about identity", particularly as a result of Brexit; in Gibraltar a "primary concern now is freedom of movement".

What next?
As Gibraltar joins the EU's Schengen Area, cross-border travel delays will ease, but businesses face a new "transaction tax" that replaces VAT-free trade. So "is this a true breakthrough?", asked The Times. It is a deal that, for now, is "open to rival interpretations" and "lots of issues will only surface once the treaty's text is published".

 
 
today's trade story

Trump says China rare earths agreement is 'done'

What happened
High-level talks between the US and China in London have ended in a "deal" that will ramp up supplies of rare earth minerals and magnets needed for the car industry, according to Donald Trump. The US will ease visa restrictions for Chinese students while China will resume exports of rare earth materials that are vital to US manufacturing. The agreement builds on a truce reached last month amid a bruising tariff war.

Who said what
Trump announced the deal on Truth Social, calling it "done, subject to final approval from President Xi and me". China's Vice Commerce Minister Li Chenggang said the two countries had reached "a framework" to act on agreements made in earlier talks.

China has "disproportionate control" over the rare earth market, said Al Jazeera, producing 60% of the world's rare earth minerals and processing nearly 90% of them. That has been a "longstanding concern of the US".

What next?
Both sides await the final sign-off from their presidents. The White House said Trump was reviewing the details. "What the president heard, he liked," said press secretary Karoline Leavitt. Yet some uncertainty remains given Trump has previously "cancelled trade agreements he has brokered with major trading partners", including Mexico and Canada, said The Guardian.

 
 
Today's archaeology story

Scientists find 'holy grail' shipwreck treasure

What happened
Scientists believe they have finally found the wreck of the San José, a Spanish warship sunk by the Royal Navy more than 300 years ago. The galleon was travelling from Panama to Spain laden with gold, silver and emeralds, now estimated to be worth as much as $20 billion. The Colombian Navy identified a wreck as a possible candidate in 2015; now a study has used an underwater camera to analyse some of the coins scattered near it.

Who said what
The findings point to "a vessel navigating the Tierra Firme route in the early eighteenth century", said lead researcher Daniela Vargas Ariza, from Colombia's Naval Cadet School and the National Institute of Anthropology and History. The San José is "the only ship that matches these characteristics”.

The galleon "has long been the stuff of legend", said The Times. Its precious cargo was intended to "finance Spain's defence against Britain"; instead, the "ghostly legend" sparked "centuries of rumour, speculation and international legal wrangling over ownership rights".

What next?
If the treasure was brought to the surface, "a legal battle would almost certainly follow", added The Times.

 
 

It's not all bad

A British startup is turning ashes into life. Resting Reef mixes human remains with oyster shells to create 3D-printed reefs that support marine life and reduce carbon pollution. Anchored to the seabed, the structures help filter water, prevent erosion and regenerate biodiversity. "We want to shift the industry from death to life," said co-founder Aura Pérez. The company plans to install its first UK reef near Plymouth within 18 months, pending licensing approval.

 
 
under the radar

Climate change can impact our gut health

The warming climate is hitting us right in the gut, as new research shows that rising temperatures are taking a toll on the health of our gastrointestinal systems and impacting the food we consume. As climate change exacerbates health conditions, it also increases inequality around the world – and it's only going to get worse.

Heat stress is negatively affecting the human gut microbiome, according to a review published in Lancet Planetary Health. The microbiome is a complex ecosystem within the gastrointestinal tract that plays an important role in overall health. High external temperatures can "induce complex changes in the gut, including shifts in microbiota composition, increased oxygen levels and overproduction of stress hormones", said a release about the review. The effects of this can be far-reaching.

And the gut is not the only area under attack by climate change. "A warming world leads to all manner of health problems, including an increased risk of cardiovascular disease, exacerbation of pulmonary conditions like asthma and COPD, and mental health problems including depression and anxiety," said Time magazine.

The gut microbiome could "serve as a sensitive biosensor for climate-related health vulnerability", but broader data, especially from middle and low-income nations, is still required to see how "climate change is truly reshaping human biology", said Elena Litchman, a microbial ecologist at Michigan State University and the lead author of the review. Further research is essential as "shifts in gut microbial composition might offer early warning signs of climate stress in human populations, helping guide targeted interventions".

 
 
on this day

12 June 1929

Anne Frank was born in Frankfurt, Germany. The Jewish girl would go on to become one of the world's most famous authors after her diary, written while she was hiding from Nazis in an annex in Amsterdam, was published by her father following her death in the Bergen-Belsen concentration camp.

 
 
Today's newspapers

Rachel Reeves' Spending Review is "fantasy spending" says the Daily Express, a "gamble" according to The Guardian and a "reckless splurge", says the Daily Mail, which adds that voters will be "paying it off for years". The NHS, defence and education all benefited from the chancellor's review, says the Financial Times, but the Home Office, Foreign Office and Culture Department face a squeeze. "Pay back our £122m for 'faulty' PPE," says The Mirror, reporting from the High Court, where the government is suing a firm linked to Conservative peer Baroness Mone for allegedly breaching a deal to provide protective equipment during the Covid pandemic.

See the newspaper front pages

 
 
tall tale

Mow problems

A new culture war has taken hold in France over lawn mowing. Local newspapers have reported a rise in disputes caused by noisy mowers, from Dordogne in the southwest to Normandy in the north. Councils "have now introduced decrees to limit the hours when lawns can be mowed", said The Times. On one side of the divide are "rural traditionalists demanding freedom to mow", while on the other are "modern homeowners requesting a right to silence and officials seeking to impose it through regulations".

 
 

Morning Report was written and edited by Arion McNicoll, Harriet Marsden, Jamie Timson, Devika Rao, Ross Couzens and Chas Newkey-Burden, with illustrations by Julia Wytrazek.

Image credits, from top: Oliver J Davis Photography / Getty Images; Jim Watson / AFP / Getty Images; Tahsin Ceylan / Anadolu via Getty Images; Illustration by Julia Wytrazek / Getty Images.