US relaxes tech restrictions to boost Aukus security pact

Good morning. At present we’re protecting:

• Why SoftBank’s AI talks with Intel collapsed

• The worldwide style manufacturers reducing Bangladesh orders

• The European fishing boats exploiting overseas waters

However first, the US is easing its restrictions on sharing delicate expertise with the UK and Australia, to be able to strengthen their trilateral Aukus safety pact aimed toward countering China within the Indo-Pacific.

The US Division of State is amending its Worldwide Visitors in Arms Regulation guidelines to make it simpler to share military-related expertise with the allies.

The state division mentioned the reform would imply the UK and Australia didn’t want to use for licences to acquire American expertise for roughly 80 per cent of their defence-related commerce with the US.

One UK official described the reforms as a “huge deal” as a result of it was “in regards to the UK, Australia and US being as aggressive as they’ll with China”.

Read the full story from our US-China correspondent Demetri Sevastopulo.

Right here’s what I’m conserving tabs on at this time and over the weekend:

• Financial information: Hong Kong, Taiwan and Malaysia publish second-quarter progress figures. Hong Kong additionally reviews July jobs information, whereas South Korea releases revised commerce information for July.

• Thailand: Parliament holds a vote on the successor to former prime minister Srettha Thavisin, who was dismissed by the constitutional court this week.

• Indonesia: The nation on Saturday holds its first independence day celebration in Nusantara, the brand new capital being carved out of the jungle. However the occasion has been scaled again amid setbacks to the $30bn undertaking.

• Singapore: Prime Minister Lawrence Wong on Sunday delivers the annual Nationwide Day Rally speech.

• Vietnam-China ties: Vietnamese chief To Lam begins a visit to China on Sunday. It’s his first overseas journey since turning into common secretary of Vietnam’s ruling Communist get together earlier this month following the demise of longtime ruler Nguyen Phu Trong. (Reuters)

How effectively did you retain up with the information this week? Take our quiz.

5 extra prime tales

1. Unique: SoftBank held talks with Intel about producing a man-made intelligence chip to compete with Nvidia however the plan foundered after the US chipmaker struggled to satisfy the Japanese group’s necessities. SoftBank is now specializing in discussions with Taiwan Semiconductor Manufacturing Co, folks acquainted with the matter mentioned.

2. Prime Minister Narendra Modi has condemned violence in opposition to girls and vowed to mete out “powerful punishment” to perpetrators of sexual crimes after the rape and killing of a junior medic sparked protests across the country. In his Independence Day remarks, Modi additionally urged neighbouring Bangladesh to make sure the security of minority Hindus after protesters overthrew the federal government of his ally Sheikh Hasina final week.

3. China’s industrial manufacturing grew on the slowest price in 4 months in July. The brand new information provides to signs of a weak start to the third quarter as a deep property slowdown weighed on the world’s second-largest financial system.

4. Spy chiefs from the US and Israel yesterday started talks within the Qatari capital, Doha, aimed toward securing the discharge of Israeli hostages and ending the Gaza struggle. The discussions have been given recent urgency by the looming risk that Iran and its regional proxy forces will retaliate against Israel for the back-to-back assassinations final month of two militant leaders.

5. Wall Road rallied as sturdy retail gross sales information and strong outcomes from Walmart elevated confidence that the US financial system will keep away from a recession and obtain a “mushy touchdown”. The S&P 500 closed 1.6 per cent larger — enough to wipe out all the benchmark index’s losses for August.

Information in-depth

World style manufacturers are shifting orders away from Bangladesh due to the turmoil that surrounded the autumn of authoritarian Prime Minister Sheikh Hasina, in accordance with producers on this planet’s second-largest garment exporter. Factories had been shut for days after Sheikh Hasina’s authorities brutally cracked down on pupil protesters, whereas multiple factories owned by regime loyalists had been torched in retaliatory assaults.

We’re additionally studying . . . 

• Visible investigation: European fishing vessels are taking on African flags, enabling them to exploit local fishing laws.

• Kishida’s successor: Japan’s subsequent chief must undertaking hope and confidence within the face of the country’s challenges, the FT editorial board writes.

• Weight-loss tablets: Years earlier than Wegovy, Swiss drugmaker Roche turned down a possible $14bn-a-year “mega-blockbuster” weight problems therapy now being developed by rival Eli Lilly.

Chart of the day

Elon Musk’s following on X has practically doubled since his buy of the social media platform lower than two years in the past, handing the billionaire a public megaphone to amplify his increasingly incendiary views.

Take a break from the information

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Extra contributions from Harvey Nriapia and Tee Zhuo