Mark Filipino hosts this FT News briefing covering major developments across markets, geopolitics, and monetary policy. The episode features FT defense correspondent Steph Chavez discussing escalating US-Iran tensions and commodities reporter Camilla Hodson analyzing the mining sector rally.

Key topics include Tesla's historic revenue decline and strategic pivot to AI, President Trump's military threats against Iran amid nuclear negotiations, Federal Reserve policy decisions under political scrutiny, and a massive rally in precious metals and mining stocks driven by global uncertainty.

Tesla's First-Ever Revenue Decline Signals Strategic Pivot

Tesla's 2024 revenue fell 3% compared to 2024, marking the first annual decline in company history due to Trump canceling EV incentives and consumer backlash to Musk's political activism.

The company announced it will discontinue S and X models while investing $2 billion into Musk's XAI artificial intelligence company, signaling a strategic shift from automotive to AI and robotics.

Tesla lost its position as the world's largest electric vehicle manufacturer amid the revenue pressures and policy headwinds.

Trump Escalates Iran Military Threats Over Nuclear Program

President Trump warned Iran that 'time is running out' to reach a nuclear deal, threatening military action worse than strikes against three Iranian nuclear facilities last June.

The US deployed an aircraft carrier strike group with 'dozens of planes and helicopters,' additional Patriot air defense systems, and F-15 Strike Eagle jets to the region - Steph.

Iran implemented emergency measures for essential goods supply while stating it's 'ready for dialogue' but prepared to defend itself and potentially disrupt oil flows through the Strait of Hormuz.

Military analysts warn that 30,000-40,000 US troops in the region face retaliation risks, with potential spillover effects across the Middle East oil infrastructure.

Federal Reserve Holds Rates Amid Political Pressure

The Fed kept interest rates unchanged as expected, with only two members voting for a quarter-point cut while inflation remains above the 2% target.

Chair Powell defended attending Supreme Court oral arguments about presidential power to fire Fed governors, calling it 'perhaps the most important legal case' - Powell.

Powell faced criticism from Treasury Secretary Scott Besson for the court appearance but noted past Fed chairs have attended Supreme Court cases.

The central bank signaled no rush to cut rates further despite signs of job market cooling, with Powell noting the economy 'has once again surprised us with its strengths.'

Mining Stocks Surge $500 Billion on Metals Rally

The 50 biggest global mining stocks including BHP, Rio Tinto, and Anglo-American added almost $500 billion in market cap over one month as precious metals hit records.

Gold, silver, and copper reached record highs driven by geopolitical uncertainty and declining confidence in the US dollar as a safe haven asset - Camilla.

The mining sector's relatively small size compared to technology means 'lots of money going into mining has a kind of outsized impact' on valuations - Camilla.

Analysts expect continued strength in mining majors due to anticipated medium-term shortages in copper, lithium, and other critical metals, though retail investor volatility poses risks.