FirstFT: Biden to warn US firms over dangers of working in Hong Kong

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Joe Biden’s administration is poised to warn US firms of the rising dangers of working in Hong Kong as China asserts extra management over the monetary hub.

Based on three individuals aware of the plan, the state division will this week flag considerations a couple of vary of threats, together with China’s skill to acquire knowledge that international firms retailer in Hong Kong.

It can additionally level to the chance of a brand new regulation permitting Beijing to impose sanctions in opposition to anybody enabling international penalties to be applied in opposition to Chinese language teams and officers.

The transfer, which the sources stated would most likely come on Friday, is the primary time the US has issued a enterprise advisory in relation to Hong Kong.

5 extra tales within the information

1. Tempo of US inflation picks up once more in take a look at for Fed The tempo of US shopper value will increase accelerated unexpectedly in June — up 5.4 per cent from the earlier 12 months — difficult the view throughout the Federal Reserve and White Home that top inflation through the US restoration will probably be short-term. What’s driving US inflation increased? FT’s Colby Smith explains.

2. Goldman and JPMorgan pivot to M&A The 2 Wall Road banks are benefiting from a growth in dealmaking exercise simply as buying and selling revenues plunge from the file ranges through the early levels of the Covid-19 pandemic. Each reported a surge in charges from advising on company acquisitions and preliminary public choices through the second quarter, serving to to offset declining returns from bond and inventory buying and selling.

3. Rivals see alternative in crackdown on Didi Chuxing China’s rival apps are dashing to lure drivers and customers as they search to benefit from a cyber safety crackdown on the Chinese language ride-hailing market chief following its blockbuster New York itemizing. The nation’s estimated 230 ride-hailing apps are accelerating enlargement plans, providing reductions and boosting incentives for drivers, analysts stated.

  • Associated learn: Singapore’s Temasek, one of many world’s largest traders, reported its strongest returns in additional than a decade and expressed confidence in its Chinese language belongings regardless of a regulatory crackdown on its portfolio firm Didi Chuxing.

4. Overseas Olympic staff arrested for alleged cocaine use 4 foreigners working on the Tokyo Olympics have been arrested on suspicion of drug offences after what native media reported was a night out within the nightclub district of Roppongi. The incident will revive opposition to the video games and stress on the Japanese authorities to crack down on masks use.

Do you suppose the Tokyo Olympics ought to proceed as deliberate given the Covid-19 scenario? Inform us what you suppose in our ballot.

5. Biden seeks public assist for voting-rights push US president Joe Biden will goal to drum up public assist in opposition to an “onslaught of voter suppression legal guidelines” in Republican states, with Democratic efforts to enact new voter safety legal guidelines going through lengthy odds in Congress. Vice-president Kamala Harris will meet this week with Democratic Texas lawmakers who left the state to halt Republican efforts to go new voting legal guidelines.

Coronavirus digest

  • Japan’s Daiichi Sankyo plans to start section 3 medical trials for its coronavirus vaccine this autumn with the goal of bringing the nation’s first homegrown Covid-19 jab to the general public in 2022.

  • The fragmented US healthcare system is hampering the nation’s efforts to quickly sequence Covid-19 instances so it might observe the Delta variant and potential future mutations, scientists and laboratory firms have warned.

  • France will make vaccination in opposition to Covid-19 obligatory for all healthcare staff and can prohibit entry to cafés, eating places and different venues to these clients with “well being passports”

Observe the most recent with our coronavirus dwell weblog and join for our Coronavirus Enterprise Replace e-newsletter for extra Covid-19 information.

The day forward

Japan industrial manufacturing figures Knowledge launched at present will probably be among the many week’s key figures for the Japanese yen. Final month manufacturing unit exercise fell 5.9 per cent amid the continued chip scarcity attributable to the pandemic. (FT, Japan Occasions)

Bastille Day If you’re a French citizen, you possibly can add to your liberté a aspect order of égalité and fraternité as Bastille Day is widely known on Wednesday. In Paris, President Emmanuel Macron will watch a army parade, thanking French well being staff for his or her work within the battle in opposition to Covid-19.

US financial institution earnings proceed Financial institution of America Corp, Wells Fargo & Co and Citigroup Inc will report earnings at present. Elsewhere in US monetary world, Jay Powell will seem in a digital listening to in entrance of Home Monetary Providers Committee Wednesday.

What else we’re studying and watching

Sovereign debt earnings vs human rights Divestment campaigns are usually not new in rising markets investing. However they’ve been given impetus by the phenomenon of ESG investing sweeping the business, as activists demand that asset managers cease supporting regimes that abuse their very own residents.

Bar chart of Bond yields (%) showing Countries with poor human rights records can offer higher yields

Hong Kong ‘doxing’ crackdown stirs fears for enterprise Throughout the Hong Kong protests in 2019, doxing — the malicious sharing of non-public info on-line — was rife. Because the territory’s administration takes motion with new knowledge privateness legal guidelines, it has raised considerations that the measures will lower entry to info and hamper social media teams.

Time for AI to drag up a chair to the negotiating desk Science fiction has sparked many years of debate about whether or not future wars will probably be made extra lethal by weaponised synthetic intelligence. But, in the actual world, AI is already being harnessed to dealer peace, writes Helen Warrell.

The hunt for the funding Holy Grail Indexing is a booming enterprise, slicing markets up into geographies or classes reminiscent of equities or bonds after which subdividing by measurement or business. However combining the whole lot from commodities to enterprise capital in a single gauge — an “final index” — has confirmed elusive, writes Robin Wigglesworth.

What enterprise leaders can do about biodiversity The World Financial Discussion board estimates that half of world GDP or $44tn is determined by nature. The FT’s Gillian Tett seems at what enterprise executives can do to shield environmental belongings. Get the most recent on socially accountable enterprise with our Ethical Cash e-newsletter. Join right here.

Gardening

Rising psychoactive crops You possibly can say that every one gardens are psychoactive, in that they’re designed to vary how we really feel. However some take that concept extra actually than others. Michael Pollan takes us on a tour of his opium poppies, hashish and mescaline-producing cacti.

Advisable newsletters for you

Swamp Notes — Knowledgeable perception on the intersection of cash and energy in US politics. Join right here

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