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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. Right now we’re overlaying:
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India and Russia’s secret commerce channel
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How China-related safety considerations have reworked 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 threat that would not be mitigated by the US and Japanese teams.
A number of individuals aware of the matter stated the White Home would stop the acquisition of the Pittsburgh-based group on nationwide safety grounds.
Biden’s resolution, which is anticipated 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 resolve 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 12 months.
However many international coverage consultants — and a few administration officers in non-public — have ridiculed the notion that Nippon’s proposed acquisition is a safety threat. Japan is an important American ally within the Indo-Pacific and has been working very intently with Washington on a spread of efforts to counter China.
Right here’s what else I’m maintaining tabs on at the moment:
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Financial information: South Korea publishes revised second-quarter development figures and Singapore experiences July retail gross sales. Thailand, Taiwan and the Philippines report August inflation information.
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Financial coverage: Malaysia’s central financial institution broadcasts its rate of interest resolution.
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China-Africa summit: Leaders and officers from 50 African nations are gathered in Beijing, the place Xi Jinping is anticipated to induce them to take up extra Chinese language items in return for pledges of loans and funding. (Reuters)
5 extra prime tales
1. Unique: Russia has been secretly buying delicate items in India and explored constructing services within the nation to safe parts for its warfare effort, in line with Russian state correspondence seen by the FT. The leaked information define Moscow’s plan to make use of “significant reserves” of rupees amassed from oil gross sales to India on securing crucial electronics by means of channels hidden from western governments.
2. Funding banks are slicing their development forecasts for China, believing Beijing dangers falling in need of its official goal 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 a press release 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 improvement with Taiwan.
4. Volvo Vehicles has deserted its formidable goal to promote solely electrical vehicles by 2030 amid a world slowdown in development for battery-powered autos. The Geely-owned Swedish group blamed altering market circumstances and shopper worries over the shortage of charging infrastructure for its revised goal.
5. Prime Minister Justin Trudeau’s crucial parliamentary alliance companion has torn up a deal to help his Liberal authorities, throwing Canada into new political uncertainty and elevating the prospect of a snap election.
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The Large Learn
The rising intersection of financial coverage and nationwide safety within the US has many roots, however the greatest issue 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 warfare free market angle — 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 value forecast by a 3rd, clouding the revenue outlook for main miners of the metallic. The Wall Avenue financial institution warned this week that an anticipated rally wouldn’t materialise because the Chinese language property rout depresses demand for commodities.
Take a break from the information
Scientists are finding out — and recreating — molecules that now not exist, in a area often called “molecular de-extinction”, writes Anjana Ahuja. No, this isn’t about bringing again the dodo or the woolly mammoth, however relatively attempting to see whether or not their genomes cover long-lost molecules that supply options to our fashionable issues.
Further contributions from Tee Zhuo and Harvey Nriapia
