Stay informed with free updates
Simply sign up to the Global Economy myFT Digest — delivered directly to your inbox.
Good morning. Brussels has raided the offices of a Chinese security equipment supplier, deploying new powers on tackling foreign subsidies in a move that will further inflame tensions between the trading superpowers.
The raid by the European Commission and local law enforcement on the offices of Nuctech, which manufactures baggage security scanners, came as Brussels cracks down on what it sees as Beijing’s unfair trading practices.
The raids took place at the Warsaw and Rotterdam offices of Nuctech, a state-owned company once run by the son of former Chinese president Hu Jintao. The company’s products have been banned by some western countries on national security grounds.
The move follows a spate of arrests in Germany of people suspected of spying for China, including three accused of trying to sell sensitive military technology to Beijing.
The EU is China’s second-largest trading partner and one of its most important sources of foreign investment, but tensions are continuing to escalate and could complicate a planned trip by Chinese President Xi Jinping to Paris next month.
And here’s what else I’m keeping tabs on today:
Economic data: The US and South Korea publish preliminary first-quarter GDP figures, while Malaysia reports its consumer price index for March.
Japan monetary policy: The Bank of Japan is likely to hold off from raising interest rates but investors expect the central bank to outline its response to rising inflationary pressures caused by the yen’s decline.
US-China relations: Secretary of state Antony Blinken will meet local officials and business leaders in Shanghai as part of a three-day visit to China.
Results: Earnings season continues with reports due from Airbus, Alphabet, AstraZeneca, Barclays, Deutsche Bank, Microsoft, Hyundai, SK Hynix and more.
Beijing Auto Show: Foreign carmakers and their Chinese rivals will unveil dozens of new models at the event amid a brutal price war in the world’s largest car market. (Reuters)
Australia and New Zealand: Financial markets are closed for Anzac Day.
Five more top stories
1. President Joe Biden signed a highly anticipated $95bn foreign aid bill yesterday, triggering a move by the Pentagon to rush $1bn in new weapons to Kyiv from US stockpiles. In addition to the Ukraine aid, the package also includes assistance to Israel and Taiwan, as well as a provision that requires Chinese group ByteDance, the parent of TikTok, to divest the popular video app. Here are more details.
2. Indonesia’s central bank has unexpectedly raised its benchmark interest rate in a bid to support the sliding rupiah, which is trading near four-year lows. The rate rise comes as currencies across Asia come under pressure from a strong dollar and expectations of a delay in US rate cuts. Here’s how other central banks in the region have reacted.
3. India’s central bank has banned Kotak Mahindra Bank from issuing credit cards or taking on new digital and mobile banking customers. The Reserve Bank of India said it had found “serious deficiencies” in IT risk and security governance at the lender, marking the regulator’s latest crackdown on the country’s fast-growing consumer finance industry.
4. The Spanish prime minister said he was considering quitting after a judge opened a preliminary investigation into his wife over accusations of corruption. Pedro Sánchez wrote in an extraordinary letter to the country released yesterday: “At this point, the question I legitimately ask myself is: is it all worth it? I honestly don’t know.” The Socialist leader said he would announce a decision on his future on April 29.
5. Meta’s revenues jumped more than a quarter in the first three months of the year, beating expectations. But shares fell about 12 per cent in after-hours trading yesterday as Wall Street reacted to its continued artificial intelligence spending spree.
The Big Read
To most of the world, Nelson Mandela remains a moral giant. But some young South Africans born after the end of apartheid want answers over what went wrong in a country where every second youth is unemployed, crime is rife and inequality along racial lines remains blatant. The fact that some people are questioning Mandela’s legacy underscores the deep disillusionment many citizens feel about the state of their country.
We’re also reading . . .
Chinese economy: The country’s stock market has been battered recently. But investors shouldn’t write off the country’s growth potential, writes Franklin Templeton’s Dina Ting.
Nissan: The Japanese carmaker has fallen behind in the electric vehicle race — David Keohane explains why it needs more than a gamble on solid-state batteries.
Silent army: Robot deliveries are becoming a common sight in Beijing, but in a world of apps and automation it is the hard-pressed gig workers who keep the city running, writes Eleanor Olcott.
Graphic of the day
Samsung on Monday announced a $40bn investment in semiconductors in Texas with plans to build an “advanced chip packaging” facility. The technique of stacking multiple chips closely together is crucial to improving the performance of semiconductors, including high bandwidth memory chips, which Samsung’s new facility will be capable of producing.
Take a break from the news
. . . and meet Tokyo’s top female sushi chefs who are expertly challenging convention in a male-dominated profession. The FT’s Kana Inagaki profiles the women who have broken through the glass ceiling and mastered the art of making delicious sushi.
Additional contributions from Irwin Cruz and Gordon Smith
Recommended newsletters for you
Working It — Everything you need to get ahead at work, in your inbox every Wednesday. Sign up here
One Must-Read — The one piece of journalism you should read today. Sign up here
Source: Economy - ft.com
