Twin scandals hit PwC’s Asia earnings

At present’s agenda: Poland’s historic grievances; Israel bans UNRWA; Spain’s economic system shines; a Nigerian tech ‘unicorn’; and Europe’s automotive disaster

Good morning. We start with the affect of scandals on PwC’s backside line in Asia.

What occurred? PwC’s enterprise within the area shrank over the previous yr after twin scandals induced the Huge 4 accounting agency to lose purchasers in China and compelled it to promote its authorities consulting arm in Australia.

How unhealthy was the hit? The agency reported a 12.7 per cent decline in Asia-Pacific earnings for the yr ended June 30, reflecting its lack of market share within the area and offsetting progress within the Center East and Europe.

Income in Asia-Pacific, the smallest of the agency’s areas, fell from $10bn within the 2023 fiscal yr to $9.3bn, down 5.6 per cent in native currencies.

The 2 scandals compounded an ongoing slowdown within the consulting market that has additionally crimped progress at rivals Deloitte and EY of their most up-to-date fiscal years. Learn the total report.

Right here’s what else I’m retaining tabs on at this time:

• Excessive-level conferences: European Fee president Ursula von der Leyen has a working lunch with Nato secretary-general Mark Rutte. Ukrainian President Volodymyr Zelenskyy joins Nordic leaders on the Nordic Council assembly in Reykjavík.

• UK: The funeral of Alex Salmond is held. The previous Scottish first minister died of a coronary heart assault whereas in North Macedonia this month.

• Outcomes: Adidas, Alphabet, BP, HSBC, Lufthansa, McDonald’s, Mondelez, Novartis, PayPal, Pfizer, Reddit, Santander, Visa and YouGov are among the many corporations reporting. Full record within the Week Forward e-newsletter.

Hear instantly from the presidents of Kenya and Somalia and different leaders on the FT’s Africa Summit beginning at this time, the place they are going to focus on tips on how to drive sustainable progress throughout the continent. Register right here.

5 extra high tales

1. Ukraine ought to exhume and rebury ethnic Poles massacred on its territory, and Germany ought to spend money on army co-operation and compensate Polish victims of the Nazis, Poland’s international minister has stated, including that historic grievances can’t be brushed apart even throughout Russia’s struggle towards Ukraine. Learn the total interview with Radosław Sikorski.

2. Spain is ready to surpass the US to develop into the world’s fastest-growing main superior economic system this yr, increasing at greater than 3 times the tempo of the Eurozone as a complete. Economists surveyed in a ballot anticipate GDP knowledge this week to indicate the nation’s economic system is on track to broaden by 2.7 per cent this yr. Right here’s what’s driving progress.

3. World funding banks anticipate UK debt gross sales this yr to rise near £300bn, the second-highest on document, as the federal government heads for a showdown with bond traders at tomorrow’s Price range. Gilts are on monitor for his or her worst month since April as unease over a proposed loosening of the nation’s borrowing guidelines provides gas to a current sell-off.

• Healthcare increase: The NHS in England will obtain £1.5bn subsequent yr to ship 2mn additional appointments as a part of a multibillion-pound annual package deal to strengthen the well being service.

• Personal fairness: Executives, lobbyists and advisers are searching for a cope with UK chancellor Rachel Reeves on carried curiosity.

4. Israel’s parliament authorised two items of laws yesterday that ban the UN company for Palestinian refugees from working inside Israeli territory and minimize diplomatic ties with the organisation. The measures, which threaten the company’s potential to supply meals, medication and shelter to almost 2mn Gazans displaced by struggle, have raised considerations amongst Israel’s closest allies.

5. Unique: The Nigeria-based fintech Moniepoint has gained “unicorn” standing after elevating $110mn from traders together with Google, a uncommon vivid spot within the funding marketplace for African tech corporations. One of many continent’s fastest-growing teams, Moniepoint gives digital monetary companies to a market the place many nonetheless lack entry to financial institution accounts. Learn extra concerning the start-up’s enlargement plans.

• Extra from Nigeria: The nation’s president has summoned oil magnate Aliko Dangote to an emergency assembly with business officers to debate supplying the industrialist’s new $20bn refinery with crude.

Strive your hand in working the UK economic system with the FT’s Price range recreation.

The Huge Learn

Europe’s automotive business is confronting an ideal storm. Demand is falling at residence and abroad, whereas corporations are navigating a dangerous and costly transition from combustion engines to electrical propulsion. Exacerbating these issues is China, which is exporting high-quality, lower-cost electrical autos to Europe in higher numbers. Between protectionism and authorities incentives, there aren’t any simple options.

We’re additionally studying . . . 

• US international coverage: America wants a brand new method that’s rooted within the breaking apart of concentrated world financial energy, writes Chris Murphy, the junior senator for Connecticut.

• US elections: With only one week left, Kamala Harris and Donald Trump seem deadlocked. Right here’s what to know concerning the presidential race in its closing stretch.

• Snap’s struggles: Founder Evan Spiegel is battling to revive the social media firm’s fortunes as ambitions are hit by the rising power of arch-rival Meta.

Chart of the day

The writer of works by JK Rowling and Sarah J Maas, Bloomsbury has remained steadfastly impartial by means of the years. Its shopper division, pushed by gross sales of two of essentially the most profitable authors of contemporary instances, has risen, however the firm can be diversifying into reference titles, having just lately acquired the tutorial record of US writer Rowman & Littlefield for $83mn in a hunt for secure revenues.

Take a break from the information

Jean Tinguely is considered as a pioneer of kinetic artwork. With the centenary of the latter-day Dadaist’s beginning simply months away, the Pirelli HangarBicocca museum in Milan has kicked off celebrations early with a retrospective that highlights the unconventional nature of his work and his connections with the Italian metropolis.