0:03

Good morning from the Financial Times. Today

0:05

is Wednesday, May eighth and this is

0:07

your Ft News briefing. The

0:10

White House is banning to us

0:12

chipmakers from supplying a Chinese company,

0:15

and Israel's move into Rafa could

0:17

make the humanitarian crisis worse. Plus,

0:19

a global trade is back and

0:21

better than ever. Well, better than

0:24

the past several years Anyway, I

0:26

mark Filipino and here's the news

0:28

you need to start your day.

0:46

Intel and Qualcomm will not be

0:48

allowed to supply while way with

0:50

semiconductors anymore. Sources told the F

0:52

T that the Biden Administration has

0:54

revoked the export licences for the

0:56

to Us chipmakers. The Us government

0:58

is concerned about national security issues

1:00

posed by the Chinese telecoms giant.

1:02

There are also security concerns about

1:04

the Chinese social media app Tic

1:06

Toc so much so that the

1:08

Us government wants to ban the

1:11

platform unless it's parent company Bite

1:13

Dance cells off that part of

1:15

the business. And yesterday Tic

1:17

Toc said if filed a lawsuit against

1:19

the Us government. In. The

1:21

Suit: The social media giant says

1:23

that the law is unconstitutional and

1:26

violates free speech rights. Israel.

1:35

Has threatened to expand its military operation

1:37

and Rafa tanks first entered the city

1:39

in Gaza late on Monday night and

1:42

the Israeli military took control of the

1:44

border crossing. Their Israel says that going

1:46

into the city is necessary to achieving

1:48

his goals and it's war against Hamas

1:51

and Joy Now the F T's Middle

1:53

East editor Andrew England to talk about

1:55

the situation. I under. Iraq.

1:58

Okay, can you give us some details that what's

2:01

happening on the ground in Rafah? We.

2:03

Know so far as that Israel's

2:05

amounts that it's and ground troops

2:08

in to the eastern area of

2:10

Russia near the Egyptian border, referees

2:12

the southern city in Gaza whereabouts

2:15

more than one million Palestinians have

2:17

taken refuse to and seven month

2:19

war in Gaza. They're saying it's

2:21

a limited operations. It's not a

2:24

full scale ground offensive on Russia,

2:26

but as cause panic. Israel's told

2:28

at least one hundred thousand people

2:31

to move from that area. But.

2:33

The aid agencies warned that there

2:35

is no essays essentially in Gaza

2:38

and the In are not sufficient

2:40

supplies shelter except for and they

2:42

warn that in a biscuit right

2:45

and even worse humanitarian crisis then

2:47

Gaza has been enduring for the

2:50

past seven months. Yeah,

2:52

and I can only imagine that makes

2:55

negotiations over a cease fire all the

2:57

more. Urgent talks there have been ongoing

2:59

for months. What's been happening over the

3:01

past few days? Or.

3:03

Hummus on Monday surprise money

3:06

by saying it has improved

3:08

a draft proposal for a

3:10

hostage deal that would lead

3:12

to an issue six weeks

3:14

pulls in hostilities and the

3:16

release of more than thirty

3:19

Israeli hostages. That would then

3:21

be followed by a second

3:23

phase which would lead to

3:25

what mediators call a sustainable

3:27

com in Gaza, which they

3:30

would hope would end the

3:32

conflict out. Israel.

3:34

Has said was Hamas

3:36

has apparently agreed to.

3:39

Deviates. Significantly. From

3:41

what Israel had previously deemed to

3:43

be acceptable and Israel launched it's

3:45

ground offensive in the eastern edge

3:48

of Ruff the shortly after. that

3:50

was the same time Israel has

3:52

sent a delegation the of negotiate

3:54

his back to Cairo to continue

3:56

talks but it's gonna take him

3:58

that effort to get a deal

4:00

over the line. There is zero

4:02

trust between them so taxi get

4:05

both to agree on a deal

4:07

is the be a massive challenge.

4:10

Andrew England is the Estes Middle East

4:12

editor. Thanks. Danger. Thank.

4:14

You. Reddit

4:22

released it's first quarterly earnings reports

4:24

since going public. The Social Media

4:27

Group reported yesterday that it's revenues

4:29

be Wall Street expectations and rose

4:31

forty eight percent. Investors loved that.

4:33

End up voted the share price

4:36

as much as sixteen percent in

4:38

after hours trading read: it expects

4:40

the good times to keep on

4:43

rolling. It's revenue estimates for this

4:45

quarter were also above analysts' estimates.

4:47

The company's net losses did jump

4:49

about five hundred million dollars compared.

4:52

with the same quarter last year, but

4:54

Reddit execs said that it was quote

4:56

driven by I P O expenses. Global.

5:05

Trade is making a comeback. Growth is

5:08

set to almost double this year from

5:10

Twenty Twenty Three. it's still it might

5:12

not all be Smooth sailing irritates me

5:14

about global trade as the F T.

5:16

Sam Fleming a safe. I

5:18

mock. Sausages, Roasters some of

5:20

the high level figures the what are we

5:23

expecting from global trade in the next are

5:25

known your to. So. We're

5:27

seeing signs that things are beginning to

5:29

improve Our we'll see had a very

5:31

steep decline and Twenty Twenty because of

5:34

the knockdowns and the pandemic her a

5:36

very sharp rebounds and then last year

5:38

twins Twenty Three Global Trade Growth and

5:40

Services and Goods is to come up

5:43

volumes of trade with up around one

5:45

percent so fairly slow. The O E

5:47

C D is now for costing that

5:50

will see an acceleration to two point

5:52

three percent and Twenty Twenty Four current

5:54

year and then three point three percent.

5:57

In twenty five, so, a relatively

5:59

healthy. Improvements in trade. And

6:02

what's driving this? A lot

6:04

of it is the cyclical story. It's

6:06

a slightly stronger picture for the global

6:09

economy. Nothing stella but a slight improvements

6:11

in global economic growth. Very much the

6:13

Us economic story which is very strong

6:16

indeed, is helping to drive demand around

6:18

the world. And we're also seeing signs

6:20

that some of the and measures being

6:22

taken by the Chinese government to helping

6:25

to prop up that economy Strong performance

6:27

by Asia in particular, East Asia. That's

6:29

a big driver in terms of the

6:31

oh you see these forecasts for stronger.

6:34

Try Gross this year and next. There.

6:36

So this all sounds. Great. But is

6:39

there anything that could rain on this parade?

6:42

Well, I suppose the seems that

6:44

we've been writing an awful lot

6:46

about or trade barriers interruptions to

6:48

global traits. Overall with seeing fragmentation

6:50

signs of different blocks, you politically

6:52

aligned blocks beginning to form and

6:55

that's a resulting in trade barriers

6:57

going up. The other point I

6:59

think is that the broader economic

7:01

outlook, even if this is as

7:03

I said, some growth in Twenty

7:06

Four is full relatively slow the

7:08

growth over the longer term through

7:10

the rest of the. Decade compared

7:12

with relatively recent history. Same

7:16

I want to focus on something that you just mentioned

7:18

now and that is. Realignment.

7:20

And eight the reason I bring it up

7:22

as because after the pandemic, a lot of

7:24

people were talking about the end of globalization.

7:27

It was the end of globalization and now

7:29

it sounds like. Maybe. It's not the

7:31

end of globalization, but. Maybe.

7:33

More about realignment. I

7:36

think that see them in one way

7:38

of looking at this is the ratio

7:41

of world trade to global Gdp and

7:43

that's is around fifty seven percent at

7:45

least full cost over the next five

7:48

years. That is broadly in line with

7:50

recent history. So you're not seeing a

7:52

big cratering in trade activity. So it's

7:54

more as you alluded to a question

7:57

of realignments or between trading block switch

7:59

there is and the sign of a

8:01

not necessarily a sense that trade is

8:04

dramatically cratering. Anyway, on reducing, I think

8:06

we talk about the notion of the

8:08

globalization which is a far more dramatic

8:10

no sense in terms of the train

8:13

picture that will be clearly exaggerating where

8:15

we are. It's more realignment than a

8:17

D. Globalization is us. Same.

8:20

Fleming as the F T's economics editor.

8:22

Think is if. You

8:32

can read more at all these stories that is

8:34

T.com for free. When you click the links and

8:36

show notice this has been your daily As T

8:38

News briefing. Make sure you check back tomorrow for

8:40

the latest business. Nice. When.

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