Tax vote, trade deals, Gaza and USAID rape kits
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Today, House Republicans advance Trump's tax cut bill to a final vote. Hamas considers the peace proposal President Trump says Israel has agreed to. And U.S. aid cuts in the Democratic Republic of Congo leave rape survivors with more suffering. ♪

It's Thursday, July 3rd. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes every weekday. I'm Kim Van Nel in Whanganui, New Zealand.

Republicans in the House of Representatives have advanced U.S. President Donald Trump's massive tax cut and spending bill to wood a final yes or no vote, appearing to overcome internal party divisions over its cost. Speaker Mike Johnson says the final vote will come by around 8 a.m. Eastern. Andy Sullivan is in Washington.

So President Trump is clearly the leader of the party. He clearly has a lot of support and respect among Republicans. But at the end of the day, they control both the House and the Senate by very narrow margins. So they have very little room for error. And recall when it passed the Senate on Tuesday, J.D. Vance had to come in as vice president and cast the tie-breaking vote. Otherwise, it would have failed. I would not be surprised if House Republicans stay at this, keep twisting arms, maybe make a few tweaks here or there.

But recall that this is a party that before Trump returned to office, really struggled to get the basics done in Congress.

With a narrow 220 to 212 majority, Republicans can afford no more than three defections to get a final bill passed. Democrats are united in opposition to the bill, saying that its tax breaks disproportionately benefit the wealthy, while cutting services that lower and middle-income Americans rely on. The nonpartisan Congressional Budget Office estimates about 12 million people could lose health insurance.

Another deadline looms, this one for the countries targeted by Trump's reciprocal tariffs to get their deals done.

Trump has announced the U.S. has struck a trade deal with Vietnam, which includes a 20% tariff on exports to the U.S. It puts a much higher 40% levy on transshipments through third countries, aimed at products largely made in China and then labeled made in Vietnam. Negotiations are also underway for an agreement with India. The deadline for all trade deals is July 9th.

The S&P 500 and the Nasdaq closed at record highs on the back of that trade deal with Vietnam. But whether that buoyant mood on Wall Street lasts could depend on a key jobs report out later today. President Trump will be watching too. Carmel Crimmins is here with more. The significance of that U.S. payrolls report is that it could be the deciding factor in whether or not we get an interest rate cut later this month.

Economists expect the data to show the labour market slowing further in June, but not at a rate fast enough to get the Fed to cut. So if the figures confirm that view, it's likely to heap further pressure on Fed Chair Jerome Powell. Trump has made it clear he wants him to cut borrowing costs and he's calling for Powell to resign. He's repeated that call this week and he's made clear that he's considering options to replace Powell, whose term as chair runs out in May.

Sean Diddy Combs has been denied bail and will stay in lockup until his sentencing. Combs was acquitted on charges of racketeering and sex trafficking, but has been found guilty of two lesser prostitution-related offences. Combs faces up to 10 years in prison on each of those counts.

The seven-week trial focused on allegations that Combs forced two of his former girlfriends to partake in drug-fueled, days-long sex performances, sometimes known as "freak-offs." A judge has blocked Trump's asylum ban at the U.S.-Mexico border. The ruling says Trump's ban of asylum claims and other humanitarian protections exceeds his authority.

To Gaza now, where Hamas is considering what President Trump is calling a final ceasefire proposal.

The proposal would mean a 60-day ceasefire, an agreement Trump says Israel has agreed to. But the long-held sticking point remains. Hamas wants Israel to pull out from the enclave, while Israeli Prime Minister Benjamin Netanyahu has reiterated his stance that Hamas must be eliminated, telling an audience that there will not be a, quote, Hamastan.

A source close to Hamas said its leaders were expected to debate the proposal and seek clarifications from mediators before giving an official response. Alexander Cornwell is our senior correspondent for Israel and the Palestinian territories. So, Alexander, how likely does a deal actually look right now? So,

Throughout the war, Israel has repeatedly said that Hamas must have no future role in governing Gaza and lay down its weapons. Hamas, which has ruled Gaza for nearly two decades, but now really only controls parts of the territory after nearly two years of war with Israel, has said that it's prepared to step down from governing, but it's so far refused to discuss disarmament. What it has offered is to release the remaining hostages that it's holding as part of a deal that would see the end of the war.

So that's what Hamas and Israel were saying before Trump put forward this ceasefire proposal. So far, Hamas has said they're studying it. And some parts of the Israeli government has come out and said there is a majority within the coalition that support the deal. But some have also come out in opposition to it. Obviously, Trump has been pushing this deal, calling it the final ceasefire. What will happen if it collapses?

Consequences, I think, are very real, especially for those in Gaza who continue today to bear the brunt of this war. The Israeli military is still carrying out airstrikes. Dozens of Palestinians each day are reported to be killed.

killed. And of course, there's severe shortages of food and even basic supplies in Gaza where many people are going hungry. There are also the hostage families in Israel. There are 50 hostages still being held in Gaza, of which around 20 are believed to be alive. For those families, a ceasefire represents a breakthrough. And without it, there may be little hope that those hostages will be released any time soon. The U.S. is pausing some critical weapons shipments to Ukraine.

Authorities in Kyiv are concerned that the move will weaken its ability to defend against intensifying airstrikes. Officials say the military aid is vital to defend against Russian attacks, and any halt will embolden Russia. Greek firefighters are trying to tame a wildfire on the island of Crete. Strong winds are fanning the flames, and residents of some areas have been evacuated. A local TV station reports that some homes have been damaged.

Across to Africa, where a Reuters investigation has exposed how USAID cut supplies of emergency kits for rape survivors in the Democratic Republic of Congo. The move leaves thousands of women without access to life-saving medication.

Jessica Donati is our West and Central Africa correspondent. Jessica, what's in these kits and why are they so important? The kits are really important because they are administered to victims as soon as possible, ideally within 72 hours, to prevent things like HIV infection, sexually transmitted diseases and unwanted pregnancies. They're really important also for the dignity of the victim who, after suffering a rape, is now presented with these potentially life-threatening illnesses.

There's still fighting in eastern Congo between Rwanda-backed M23 rebels and Congolese forces. That's despite a recent peace agreement signed by the DRC and Rwanda, which denies backing the rebels. Jessica, what impact is the violence having on the shortage of these kits?

According to the UN, seven out of 34 of these health zones in the eastern area where the conflict is worse, they're the only ones that still have some supplies left. Currently, barely one in 10 women is getting these kits, which means the other nine in 10 are exposed to getting HIV, to having unwanted pregnancies and illnesses, which further traumatise them after suffering from these rapes. Jessica and the team reached out to the US government for a response to their reporting, but have not yet received an answer.

Trump has said that the U.S. pays disproportionately for foreign aid.

And for today's recommended read, a photo essay of how six months after the LA wildfires, some residents are adjusting to a new life of sleeping in their recreational vehicles, often surrounded by empty lots that were once the site of family homes. You can find out more by following the link in the pod description. For more on any of the stories from today, check out Reuters.com or the Reuters app. And don't forget to follow us on your favorite podcast player. We'll be back tomorrow with our daily headline show.