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    Trump's EU trade deal, Gaza aid, and a major win for Samsung

     
    Today's trade story

    US and EU reach trade deal

    What happened
    President Donald Trump and European Commission President Ursula von der Leyen yesterday struck a last-minute deal in Scotland to avert a major transatlantic trade war.

    After months of tense talks, both sides agreed to a 15% U.S. import tariff on most EU goods — half the previously threatened rate. The EU will also spend $750 billion on U.S. energy products and invest a further $600 billion in the American economy over three years.

    Who said what
    "It solves a lot of stuff," Trump said, describing the agreement as "really the biggest trading partnership in the world." Von der Leyen admitted that the talks were "tough," but said both sides worked hard to "come to a common position." EU Trade Commissioner Maroš Šefčovič said that Trump was a “very tough negotiator."

    The agreement stabilizes "the biggest and deepest commercial and investment relationship the global economy knows," said Jörn Fleck, senior director of the Atlantic Council's Europe Center. But it "doesn’t enhance trade," said economist Joe Brusuelas at consulting firm RSM. "You're going to pay more for your European imports."

    What next?
    Details of the deal "remain murky," said CNN. Neither party published the text of the agreement and "they appeared to have different interpretations of some of the details," said The Wall Street Journal. Still, markets are expected to respond positively to the announcement.

     
     
    Today's middle east story

    Israel 'pauses' Gaza military activity as aid outcry grows

    What happened
    Israel announced yesterday it will pause military activity in Gaza City, Al-Mawasi and Deir al-Balah from 10 a.m. to 8 p.m. "every day until further notice." The Israel Defense Forces also said "secure routes" for food and medical aid delivery would be established from 6 a.m. to 11 p.m. The announcement came as the World Health Organization warned malnutrition had reached "alarming levels" in the region. 

    Who said what
    "Nearly one in five children under five in Gaza City is now acutely malnourished," the WHO said, blaming "deliberate" efforts to block and delay aid. The "tactical pause" would refute this "false claim," the IDF said. Hamas said Israel was "whitewashing its image before the world."

    What next?
    "The volume of aid needed is huge," said CNN, and "thousands of trucks" are waiting at Gaza's border crossing points. With long wait times expected, United Nations aid groups will need Israel to give trucks "really fast clearances and approvals" in order to "take advantage of these pauses," Ross Smith, director of emergencies at the World Food Program, told Reuters. Both Israel and Hamas vowed to continue their respective military campaigns.

     
     
    Today's business Story

    Samsung to make Tesla chips in $16.5B deal

    What happened
    Samsung will make semiconductors for Tesla, starting with the electric-vehicle giant's next-generation AI6 chips for its self-driving technology, Tesla CEO Elon Musk confirmed today. The $16.54 billion contract will last through 2033 and is worth 7.6% of Samsung's 2024 revenue, making it "the biggest deal that Samsung's chip business has won from a single customer," according to the Financial Times.

    Who said what
    "The strategic importance of this is hard to overstate," Musk said on X. It's certainly "a major win" for Samsung, as "it struggles to catch up" with rival Taiwan Semiconductor Manufacturing to ink chipmaking contracts with tech giants, said The Wall Street Journal.

    The Tesla deal "may also help them to attract other customers," Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore, told Bloomberg.

    What next?
    Samsung shares rose over 6% on the news. The Texas plant where Samsung is expected to produce the chips isn't slated to open until 2026. Analysts forecast chip production to begin by 2028.

     
     

    It's not all bad

    With 91% of global renewable power projects now cheaper than fossil fuels, the world is "on the brink of a breakthrough in the climate fight," said The Guardian. In the past 15 years, technological advances have drastically lowered the cost of solar and wind power and battery-energy storage systems, helping avoid fossil fuel costs of $467 billion in 2024, said a new report by the International Renewable Energy Agency. Renewables growth has been strongest in Brazil, China and India.   

     
     
    Under the radar

    Food may contribute more to obesity than exercise

    The difference in global obesity levels could be tied more to the consumption of ultra-processed foods than to a sedentary lifestyle, according to new research. The food we eat "plays a far greater role than reduced energy expenditure in obesity," said a study published in the journal PNAS. After collecting data from 34 countries or cultural groups, researchers found the "total calories burned per day is really similar across these populations", despite differences in lifestyle and activity levels, Herman Pontzer, a senior author of the study, told NPR.

    The findings support a theory about human metabolism called the constrained total energy expenditure model, which says that "our brains and bodies closely monitor our total energy expenditure, keeping it within a narrow range," said The Washington Post. Essentially, the body's metabolism adjusts to a person's lifestyle. 

    This indicates another culprit contributing to obesity, and a subanalysis by the researchers found that people "in countries that got more of their calories from ultra-processed foods tended to have more obesity and higher body fat percentages," said NPR. These foods are "making us fat not just by tempting us to eat more but also by allowing our bodies to absorb more calories from each bite," said News Medical.

    Many Americans do not have access to healthy high-quality food. "We have been telling Americans that you are lazy, you are not moving enough, you are eating too much," Dariush Mozaffarian, the director of the Food is Medicine Institute at Tufts University, said to NPR. "And I think what this study shows" is that "our food is driving this." 

     
     
    On this day

    July 28, 1914

    Austria-Hungary declared war on Serbia following the assassination of Archduke Franz Ferdinand, beginning World War I. The four-year war eventually encompassed almost every European power, with the U.S. entering in 1917 after public opinion changed. The war cost an estimated 38 million lives. 

     
     
    TODAY'S newspaperS

    'Broad brush' deal

    The U.S. and European Union have agreed a "broad brush" trade deal, which averts "what could have become a painful trade war," says The New York Times. Higher import taxes on both sides might have "sent shockwaves through economies round the globe," says the Los Angeles Times.
    But it's not all good news for Trump, who is "increasingly frustrated" with how the Epstein files saga has "dominated the news, and overshadowed his agenda," says The Washington Post. The president's "superpowers" have included the "ability to redirect, evade and deny," says the Detroit Free Press, but his "distraction methods" have now fallen flat.

    ► See the newspaper front pages

     
     
    Tall tale

    A real cat burglar

    Leo, a cat in Auckland, New Zealand, has been nicknamed Leonardo da Pinchy due to his tendency to steal clothes from neighbors. The purring pilferer swipes sweaters, boxers and socks from clotheslines and once came home with nine items. Owner Helen North, who posts photos of the stolen goods online to find their rightful owners, said Leo remains popular with neighbors. "Some of them are quite put out that he hasn't actually stolen anything of theirs," she said to The Associated Press.

     
     

    Morning Report was written and edited by Nadia Croes, Catherine Garcia, Jessica Hullinger, Anya Jaremko-Greenwold, Justin Klawans, Summer Meza, Chas Newkey-Burden and Helen Brown, with illustrations by Stephen Kelly and Julia Wytrazek.

    Image credits, from top: Andrew Harnik / Getty Images; Ali Moustafa / Getty Images; David Zalubowski / AP; Illustration by Julia Wytrazek / Getty Images
     

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