Author: Marketplace

President Donald Trump is scheduled to visit the Federal Reserve this afternoon. The visit is the latest turn in Trump’s campaign to pressure the Fed to lower interest rates. It's highly unusual for a president to visit the Federal Reserve; most stay away in a nod to Fed independence. And later: Did you remember to send a card? It's the 100th birthday of a research lab to which we owe much of modern life: Bell Labs.

From the BBC World Service: Indian Prime Minister Narendra Modi is in London sealing a major trade deal with the United Kingdom worth $6.5 billion. The agreement, billed as the biggest since Britain left the European Union, will slash India's tariffs on U..K goods from 15% to around 3%. We'll discuss the significance. Then, Armenia — a landlocked country of just 2.7 million people — is making big waves in tech, from coding labs and schools to startups.

This story was produced by our colleagues at the BBC.

High-flying and high-tech, the very latest in drone technology took to the skies over an airfield near the Danish city of Odense.

At the International Drone Show, 50 exhibitors showed off their wares. And because more money is flowing into military budgets, the emphasis was on defense.

Danish company Quadsat makes drones with satellite reading software. Besides civilian uses, the devices can also identify enemy radar.

"Over the years, we have seen an increasing interest from the defense side, no doubt about that, and that's also where we have a lot of work currently being carried out," said Klaus Aude, Quadsat’s chief commercial officer.

Leaders of the NATO military alliance have agreed to ramp up defense spending to 5% of their countries' economic output by 2035, following months of pressure from President Donald Trump.

Nordic countries have already committed to bigger budgets. Among them, NATO’s newest members Finland and Sweden, as well as long time members Norway and Denmark.

As Europe races to re-arm, drones are a sought-after technology. One estimate suggests the global market for defense drones is already worth over $24 billion, and could double by 2032.

"The Nordics have always been very strong in drone adoption, drone development," said Kay Wackwitz, chief executive of Drone Industry Insights.

"You can definitely see that those countries that have borders with Russia are really stocking up on those technologies. The commercial market is now struggling for its fourth year in a row with declining venture capital,” added Wackwitz. “And on the other side, we see a huge demand on the military end of things, which means a lot of companies are refocusing from the commercial space to the military space."

In June, low-cost Ukrainian drones carried out an audacious mission, destroying dozens of prized Russian fighter jets in a conflict that’s reshaped modern warfare.

North of Copenhagen in a hangar, Danish firm Nordic Wing makes drones used for battlefield surveillance and combat. Its customers are NATO countries, but they are largely destined for Ukraine, where “there was a huge need and a calling to have these systems helping on the front lines,” said Jonas Münster, CEO of Nordic Wing. “And therefore, the production went into overdrive. Now we have a European Union that is looking into what we've learned in Ukraine and realizing that we don't have a drone capability in Europe."

With a 2,000-square-kilometer flying zone, the drone port in Odense has grown into a hub for tech startups. Next year, military personnel will also be training there at a new $110 million army facility.

"Some militaries have actually made a shift from saying ‘every soldier is a rifleman,’ to ‘everyone is going to be a drone operator at some level,’” said Major Rasmus Ros, who’s part of Denmark’s Defense Command. “We're going to have drone operators in the whole joint military of Denmark. They can come here, get their basic training, share ideas and technology development, and then go back to their units and further develop that."

But not everyone is so positive about this. Outside the trade fair, protestors chanted "drones for peace, not war." New geopolitical realities are reshaping this fast-paced industry. And as this technology advances, ethical and regulatory concerns over the use of AI to pilot drones are also being raised.

Under the new agreement, American consumers will now face a 15% tax on Japanese imports — a major jump from the 1.5% rate set back in 2019. The White House says making imports more expensive will encourage more domestic production. But these tariffs could have the opposite effect when it comes to getting manufacturing back on American shores. Also on the show: AI infiltrates the perfume industry. But first, how a weak U.S. dollar is boosting earnings, and why companies are quiet about it.

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Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.

President Trump announced a trade deal with Japan that will impose 15% tariffs on imports. Wall Street is happy, but it could put the United States in an awkward position as the Trump administration continues to seek other deals. Sabri Ben-Achour explains. Also, the federal government is leading a major deregulatory crusade. And they want your input. Plus, quilts and blooming plants make us smile.

Here’s everything we talked about today:

• "Trump's Labor Department proposes more than 60 rule changes in a push to deregulate workplaces" from AP News
• "Trump Strikes Deal With Ally Japan Setting Tariff Rate at 15%" from Bloomberg

• Listener Jen’s quilting Instagram

  
  

  We love hearing from you. Leave us a voicemail at 508-U-B-SMART or email makemesmart@marketplace.org.

Later today, we'll get sales, profits, losses, and hints of the road ahead from Tesla. But its boss, Elon Musk, has had a lot to juggle as of late: Tesla, government cost-cutting, X, SpaceX, xAI, and now maybe even a new political party. We'll discuss what all of these various priorities mean for Musk, Tesla, and Tesla's shareholders. And later on the program: Could prefab homes help alleviate the housing crisis?

At an artificial intelligence summit in Washington today, we'll learn more about the Trump administration's plans for guardrails to keep a potentially dangerous technology in line. Other topics likely to be addressed include the federal government's use of AI, energy-hungry data centers, loosened export controls on AI chips, and what the administration perceives as anti-conservative bias in tech. Also: what to make of Trump's trade deal with Japan, and what to expect from Tesla's Q2 results.

From the BBC World Service: President Donald Trump has announced a deal with the world's fourth-largest economy. After weeks of tense negotiations, the U.S. will cut its import tax on Japanese cars and parts from 25% to 15%. The U.S., in return, will get $550 billion of investment from Japan. Plus, two former bank traders in the U.K. who allegedly manipulated interest rates have had their convictions overturned, and locals in Spain's Andalusia region are celebrating Sherry with a special competition.

ProPublica has recently discovered blueprints for an automated computer program that could potentially share millions of IRS taxpayer records with ICE, as the Trump administration continues to step up deportations and criminal investigations. When Marketplace asked for comment about the system uncovered by ProPublica, a senior DHS official cited a recent memorandum of understanding that allowed for the sharing of specific taxpayer info with appropriate safeguards and said descriptions of this system as "surveillance" were "absurd."

Marketplace’s Meghan McCarty Carino spoke with William Turton, one of the reporters on the ProPublica investigation, about how exactly this program would work.

"Marketplace" host Kai Ryssdal speaks with Greg Ip at the Wall Street Journal about growing threats to the Federal Reserve's independence — and why it matters not just for the U.S. economy, but for financial markets around the world. Plus, why investors are chasing riskier bets, how Subway plans to revive flagging sales and what one city is doing to help robotaxis navigate around emergency vehicles.

Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.

Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.