July 4th 2025: EU-US-China Trade Battles, UK Political Splits, German Asylum, Budget Brawls & Lagarde's Visit

Welcome! Today, we're unpacking the escalating EU-US-China trade battles, with US tariffs looming after a comprehensive deal proved "impossible" before the deadline, and Beijing threatening to cancel part of an upcoming EU summit amidst ongoing disputes over rare earths and brandy duties.In the UK, we'll delve into the intensifying UK political splits, sparked by a dramatic and bewildering announcement of a potential new Corbynite party threatening to pull support from Labour's left flank.Germany's Interior Minister, Alexander Dobrindt, is pushing for stricter EU asylum reform, planning a high-altitude summit on the Zugspitze to advocate for changes to existing regulations, including the controversial "connection element".Across the continent, budget brawls are brewing as Ursula von der Leyen's proposed cuts to cohesion policy face strong resistance from member states, and Emmanuel Macron aims to discipline ministers ahead of his own austere budget announcements.Finally, we'll cover the significant meeting between ECB Chief Christine Lagarde and Friedrich Merz, where discussions are expected to focus on the customs dispute between Europe and the USA, and Lagarde's favorable view of the Merz government's debt policy. Stay tuned for all the details!