Today’s top stories
Shares and bonds in Chinese real estate companies surged following news of a 16-point plan from Beijing, reported by the FT on Sunday, to support the ailing sector.
The Democrats retained control of the Senate after a midterm election victory in Nevada gave them their 50th seat out of 100. Here’s our explainer on what we’ve learned from last week’s polls and here’s commentator Megan Greene’s take on what it means for investors.
Jeff Bezos pledged to give away most of his $124bn fortune during his lifetime. The Amazon founder commented: “The hard part is figuring out how to do it in a levered way. It’s not easy.”
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Good evening.
Russia’s aggression in Ukraine and tensions over Taiwan were the key issues as world leaders gathered for the G20 summit in Bali today, an event dubbed the “first global summit of the second cold war”.
Ahead of tomorrow’s formal meeting, US president Joe Biden — buoyed by favourable results in the US midterms — met his Chinese counterpart Xi Jinping for three and a half hours in their first face-to-face meeting as leaders.
After optimistic words about “keeping lines of communication open” and “managing our differences” in a post-meeting press conference, the White House said Biden had criticised China’s “coercive and increasingly aggressive actions” toward Taiwan.
House Speaker Nancy Pelosi’s visit to the island this summer had provoked a strong reaction from Beijing, leading it to launch military exercises and suspend routine communications on issues such as climate change.
The first and dominant item on the formal G20 agenda tomorrow however remains Russia’s war in Ukraine, followed by a session on global health, with a third on digital issues.
None of the G20 (comprising 19 states and the EU) sided with Russia to oppose a UN resolution condemning Moscow’s attempted annexation of parts of Ukraine, but three members — China, India and South Africa — abstained. China says it is neutral on the conflict, but has backed Moscow’s claim that the US-led expansion of Nato is what triggered the invasion. Conspicuous by his absence is Russian president Vladimir Putin, who has sent foreign minister Sergei Lavrov in his place.
Separately, CIA chief Bill Burns today warned Russia against using nuclear weapons in the first known in-person meeting between senior officials of the two countries since the invasion, while Nato said it would not pressure Ukraine into peace talks, promising continued support for the country.
The G20 meeting also presents a rare moment on the international stage for Joko Widodo, Indonesia’s president and summit host. In an interview with the FT last week, the head of the world’s fourth most populous country expressed frustration that the G20 was being seen as a political forum, rather than the economic and development meeting originally intended. Judging by today’s headlines, he’s likely to remain disappointed.
Need to know: UK and Europe economy
The UK’s fiscal watchdog estimates that government borrowing will be a much higher than expected £100bn as chancellor Jeremy Hunt prepares for his Autumn Statement, likely to feature news of higher taxes for all and an overhaul of R&D tax credits. Chief economics commentator Martin Wolf says the Tories need to ditch their outmoded ideology and raise taxes. Here are five things to look out for on Thursday.
Eurozone industrial production rose by a more than expected 0.9 per cent in September as supply chain problems eased. One analyst said companies might be bringing forward production to avoid energy supply disruptions this winter.
The German government nationalised Gazprom’s German subsidiary in a move it said was designed to safeguard the country’s gas supply. The company’s “over-indebtedness” had left it in danger of insolvency, the economy ministry said.
Russian attacks have damaged much of Ukraine’s energy infrastructure, and exacerbated an already dire financial situation for Kyiv, which says it needs $55bn in international assistance for next year. Businesses are clinging on in the darkness. A Ukraine minister warned the state could seize more corporate assets to help the war effort.
Our Big Read discusses the legal fallout from a mortgage time bomb that threatens to push Polish banks under and do serious damage to the economy.
Need to know: Global economy
Another Big Read, published earlier today, looks at how North Korea has become a cyber crime superpower, particularly in cryptocurrency theft, which has become one of the regime’s main sources of revenue.
The global housing market is set for the broadest slowdown since the financial crisis as rising mortgage payments and a deepening cost of living crisis put paid to the pandemic-induced boom.
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China’s Singles Day, the world’s biggest retail event, failed to lift the gloom around the country’s economy. Consumers and retailers remain nervous about Xi Jinping’s zero-Covid policy as well as a crackdown on excess.
Saudi Arabia is hoping a 50 per cent increase in phosphate fertiliser production can help it become less dependent on oil revenues. The kingdom was emboldened at the COP27 conference last week as demand for oil from the west “exposed hypocrisies” on the use of fossil fuels.
Need to know: business
The US Securities and Exchange Commission has started to demand more details from companies on the impact of inflation on their business. Shipping group FedEx and retailer Costco are among those with a letter from the SEC.
As the “free money” era comes to an end, dealmaking is getting tougher, with overall global activity so far this year down a third on last year. For companies with solid balance sheets, however, the current environment makes it the perfect time to strike.
High energy prices are leading UK hospitality businesses to cut working hours. The imminent World Cup, normally a boom for pubs showing live games, is unlikely to provide much of a saviour this time around.
The head of the world’s second-largest gold miner said the sector outlook was uncertain but played down fears of a price crash.
Unexpectedly downbeat financial forecasts from the likes of Qualcomm, AMD and Intel have highlighted how the US chipmaking boom has turned from boom to bust. China’s semiconductor industry meanwhile is still struggling to adapt to new US export controls that limit its ability to obtain or make advanced chips.
Artificial intelligence is giving insurers “godlike” powers to make predictions on everything from natural disasters to brain disease, says the head of the company introducing Japan’s firsts dementia prevention insurance.
The FT invited readers to nominate European companies using new technology to meet the business challenges of 2022, from the Ukraine war to the climate crisis. Read our Tech Champions series.
The World of Work
“Our class tries to meet online, but we have to shelter underground during rocket attacks up to three times a day and we often have power cuts.” Studying for a business degree is hard enough, but how about during a war? We talk to Ukrainian managers enrolled in an executive MBA at Kyiv’s International Management Institute.
For long-serving staff annoyed with demands from younger colleagues for a better working life, columnist Emma Jacobs has some advice: don’t be the office curmudgeon. One person definitely not sympathetic with WFH is new Twitter boss Elon Musk, who in his first email to staff since taking over, has banned remote working.
As the UK economic outlook darkens and we enter the era of polycrisis, now is the time for boards to show solidarity with their workers by restraining bosses’ pay, says columnist Helen Thomas.
Get the latest worldwide picture with our vaccine tracker
Some good news
A new study that shows that rats move instinctively in time to music (at least to a Mozart piano sonata), something previously only known in man, could shed light on how music and dance became such an important part of the human condition.
Source: Economy - ft.com
