Economy

FirstFT: In the present day’s high tales 

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Boris Johnson romped to victory within the second spherical of Conservative get together management voting on Tuesday, however Rory Stewart has emerged as a potent rival to succeed Theresa Might.

Mr Johnson gained the backing of 126 out of 313 Tory MPs, whereas Dominic Raab, a former Brexit secretary, was eradicated. Right here’s the place the candidates stand.

A 3rd vote on Wednesday will additional whittle down the sector following a televised BBC debate on Tuesday, at which Mr Johnson warned that delaying the October 31 Brexit deadline would create a “catastrophic lack of confidence in politics”.

Mr Stewart disagrees, however he could also be counting on a brand new prime minister’s “recent mandate” to ship an unloved divorce deal, Sebastian Payne writes in our Brexit Briefing (join right here).

Tories could also be backing Boris, however FT readers had completely different concepts: 61 per cent voted for Mr Stewart in our ballot. As in Westminster, Jeremy Hunt got here second, with 12 per cent. Because of all who voted.

Within the information

Renault-Nissan alliance endangered
A number of of Renault and Nissan’s joint capabilities are being quietly unwound because the carmakers’ alliance crumbles within the absence of Carlos Ghosn, the FT has learnt. “Individuals don’t have anything to do,” stated one insider. (FT)

Trump targets Draghi
Donald Trump accused Mario Draghi of “unfairly” manipulating the euro, after the European Central Financial institution president’s dovish feedback pushed the euro down and despatched bond costs sharply greater. Mr Draghi’s successor must keep markets’ belief within the ECB. (FT)

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US-China commerce hopes
Asia shares climbed on Wednesday after Donald Trump, who additionally launched his re-election marketing campaign on Tuesday, predicted an “prolonged assembly” with Xi Jinping at subsequent week’s G20 in Japan. However the dispute’s predominant battleground is shifting from commerce to expertise, notably telecoms and 5G. (FT)

Blackstone boss’s beneficence
Stephen Schwarzman has given Oxford college a £150m reward, its largest for the reason that Renaissance, which can fund the development of a brand new humanities hub and an institute targeted on the ethics of synthetic intelligence. (FT)

G7 plans Fb Libra regulator
Fb’s digital foreign money plans drew a direct response from regulators on Tuesday, with the G7 saying it could arrange a high-level discussion board to look at dangers to monetary providers and guarantee money-laundering controls. Right here’s a glance into how Fb constructed a coalition behind its new crypto coin, and right here’s a two-minute video information to the way it works. (FT)

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EU delays Balkan accession
EU member states have postponed a promised choice on accession talks for North Macedonia and Albania, concentrating on a “clear and substantive” conclusion by October. Vacillation might empower nationalists, each international locations’ premiers informed the FT. (FT)

20-somethings’ monetary restoration
Younger adults’ dwelling requirements have risen sooner than another age group over the previous 5 years, outstripping even child boomers’ revenue progress. However staff of their 30s, hardest hit by the monetary disaster, are nonetheless feeling its impression. (FT)

BA orders Boeing jets
British Airways’ mother or father firm ordered 200 737 Max plane, a $24bn deal that ends Boeing’s orders drought. American Airways’ pilots union is planning to precise considerations to US lawmakers on Wednesday that fixes to the grounded plane stay inadequate. (FT, CNBC)

Italian minister dismisses mini-BOTs
Italy’s finance minister dominated out introducing new treasury bonds to pay excellent money owed in an interview with the FT, defying Matteo Salvini. “We don’t want different foreign money devices,” Giovanni Tria stated. (FT)

Ladies’s World Cup
Marta’s document 17th World Cup finals purpose clinched a 1-Zero win over Italy and a last-16 place for Brazil, whereas Sam Kerr’s quartet lifted Australia over Jamaica and drew opponents’ appreciative accolades. However on-pitch exploits are being undermined by Fifa’s disinterest. (BBC, Guardian)

Ethical Cash launch

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Learn her piece on American telecoms group Verizon’s $1bn experiment — a safety that raises funds for sustainable enterprise. (FT)

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The day forward

Fed meets on charges
The Federal Reserve is anticipated to carry rates of interest regular on Wednesday, however monetary markets are pricing the possibility of a minimize. Donald Trump explored an unprecedented demotion of Fed chairman Jay Powell earlier this yr. However with US equities concentrated in liberal cities, even an financial slowdown could not drive Trump’s hand, our Swamp Notes e-newsletter writes. (FT, Bloomberg)

UK inflation knowledge
UK inflation figures are out on Wednesday, with client value progress anticipated to have slowed again to 1.9 per cent in Might from 2.1 per cent in April. (FT)

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What else we’re studying

How Hong Kong defied Xi
Mass demonstrations in Hong Kong have been an embarrassing rebuke to China’s Communist get together, worsened after the town’s chief apologised and shelved a controversial extradition invoice — a response celebrated as a significant political climbdown by Xi Jinping. For mainland Chinese language who sought refuge in Hong Kong, the invoice might spell the tip of cherished freedoms. (FT, NYT)

Weak returns drive dangerous property loans
Actual property mortgage packages are hitting the US market on the quickest fee in a decade, as traders flip to CLOs, the riskier cousins of extra mainstream industrial mortgage-backed securities. However the shift is elevating analysts’ considerations of extra extreme losses if the property sector stumbles. Learn extra within the FT’s new sequence on slowing property markets. (FT)

Europe’s new lingua franca
German was lengthy Europe’s main mom tongue, French the popular register in Brussels and English a shared second language. However the web and accession of central and japanese European states have made English more and more dominant, stirring continental resentments forward of Brexit. (Economist)

UK’s function in Yemen
Saudi Arabia’s air marketing campaign in Yemen has killed tens of 1000’s and displaced hundreds of thousands. And it has relied on British help: Yemen is being bombarded with BAE Methods’ bombs, dropped from British planes flown by RAF-trained pilots. (Guardian)

India poised for election aftershocks
Narendra Modi’s electoral earthquake was a political achievement. However will a second time period see the financial reformist in Mr Modi unleashed, or extra of the identical? The reply is probably going the latter, and that could be a catastrophe, Martin Wolf writes. (FT)

Ending office sexual harassment
This week might be a defining second for the #MeToo motion, because the Worldwide Labour Convention votes on Thursday on a world conference to finish sexual harassment at work. It’s lengthy overdue, writes Zelda Perkins. (FT)

Why Massive Tech is learning rats
Animal researchers are serving to develop synthetic intelligence software program and brain-computer interfaces, that are utilizing birds, mice, and fish to assist translate the educational course of from animal fashions to AI. (Bloomberg)

The Elysée lunch that doomed Platini
On November 23 2010, then-Uefa chief Michel Platini had lunch on the French presidential palace with Nicolas Sarkozy and the Qatari crown prince. 9 days later, the Gulf state was named the 2022 World Cup host, triggering a world corruption investigation and the downfall of Mr Platini, who was questioned by French police on Tuesday. (FT)

FT Revolutionary Attorneys

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Video of the day

Poor therapy for UK cleaners
FT social coverage correspondent Robert Wright joins a Latin American contract cleaner setting off at 4am to have a look at the mistreatment of London’s largely feminine overseas cleaners.

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