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The tales that matter on cash and politics within the race for the White Home
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Good morning. In the present day we’re overlaying:
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India and Russia’s secret commerce channel
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How China-related safety considerations have remodeled US financial coverage
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An interview with Sony’s CEO
However first, President Joe Biden will block Nippon Metal’s acquisition of US Metal after concluding that the $14.9bn transaction posed a nationwide safety danger that would not be mitigated by the US and Japanese teams.
A number of folks accustomed to the matter stated the White Home would stop the acquisition of the Pittsburgh-based group on nationwide safety grounds.
Biden’s choice, which is predicted within the coming days, comes as Kamala Harris, the Democratic presidential nominee, steps up her campaigning for blue-collar votes in Pennsylvania, a swing state that would determine November’s US election.
Talking in Pennsylvania on Monday, Harris stated the long-lasting US steelmaker ought to stay “American owned and American operated”, mirroring the stance that Biden took after Nippon unveiled the deal final yr.
However many international coverage consultants — and a few administration officers in non-public — have ridiculed the notion that Nippon’s proposed acquisition is a security risk. Japan is an important American ally within the Indo-Pacific and has been working very intently with Washington on a variety of efforts to counter China.
Right here’s what else I’m preserving tabs on in the present day:
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Financial knowledge: South Korea publishes revised second-quarter development figures and Singapore experiences July retail gross sales. Thailand, Taiwan and the Philippines report August inflation knowledge.
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Financial coverage: Malaysia’s central financial institution broadcasts its rate of interest choice.
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China-Africa summit: Leaders and officers from 50 African international locations are gathered in Beijing, the place Xi Jinping is predicted to induce them to absorb more Chinese goods in return for pledges of loans and funding. (Reuters)
5 extra high tales
1. Unique: Russia has been secretly buying delicate items in India and explored constructing amenities within the nation to safe parts for its battle effort, in line with Russian state correspondence seen by the FT. The leaked recordsdata define Moscow’s plan to make use of “important reserves” of rupees amassed from oil gross sales to India on securing important electronics by way of channels hidden from western governments.
2. Funding banks are slicing their development forecasts for China, believing Beijing dangers falling short of its official target of about 5 per cent. China’s GDP goal has attracted shut scrutiny within the wake of the pandemic amid weak investor confidence and a struggling property sector.
3. Washington’s new envoy to Taiwan has praised Taipei’s defence reforms, in an announcement of reassurance because the prospect of one other Donald Trump presidency raises considerations over the US’s dedication to its allies and companions. Raymond Greene additionally stated Washington would “not rule out” joint weapons development with Taiwan.
4. Volvo Vehicles has deserted its formidable goal to promote solely electrical vehicles by 2030 amid a worldwide slowdown in development for battery-powered autos. The Geely-owned Swedish group blamed changing market conditions and consumer worries over the dearth of charging infrastructure for its revised goal.
5. Prime Minister Justin Trudeau’s important parliamentary alliance accomplice has torn up a deal to help his Liberal authorities, throwing Canada into new political uncertainty and raising the chance of a snap election.
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The Huge Learn
The rising intersection of financial coverage and nationwide safety within the US has many roots, but the biggest factor has been China. Fears about espionage and dual-use applied sciences have fused with financial nationalism to create an American mindset unrecognisable from the nation’s post-cold battle free market perspective — with dramatic implications for the way forward for the worldwide economic system.
We’re additionally studying . . .
Chart of the day
Goldman Sachs has slashed its 2025 copper worth forecast by a 3rd, clouding the revenue outlook for main miners of the steel. The Wall Road financial institution warned this week that an anticipated rally wouldn’t materialise because the Chinese property rout depresses demand for commodities.
Take a break from the information
Scientists are finding out — and recreating — molecules that not exist, in a subject often known as “molecular de-extinction”, writes Anjana Ahuja. No, this isn’t about bringing again the dodo or the woolly mammoth, however moderately attempting to see whether or not their genomes conceal long-lost molecules that provide options to our trendy issues.
Extra contributions from Tee Zhuo and Harvey Nriapia
