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Good morning and welcome back to FirstFT. Today, Easter Monday, the Vatican has announced the death of Pope Francis, leader of the world’s 1.4bn Catholics. Amy Kazmin has the latest from Rome while Tony Barber has written an excellent obituary.
This is what else is on the agenda for today:
Chinese funds cut back on new investments in the US
World leaders gather in Washington for the IMF/World Bank spring forums
Crypto casino takings shoot up
And the connection between Donald Trump and a small scenic Swiss ski village
Chinese state-backed funds are pulling back from making new investments in US private equity, pulling billions from firms such as Blackstone and the Carlyle Group as tensions with Washington escalate. It is the latest in the fallout from Donald Trump’s renewed trade offensive.
FT reporters have spoken to a number of private equity executives with knowledge of the matter, and discovered that state-backed funds have been cutting back over recent weeks. In some cases, where a final commitment had not yet been made, this included pulling out of allocations that had already been planned.
Why has this happened? China has borne the brunt of the US tariffs announced in the past three weeks, with Trump imposing up to 145 per cent on Chinese exports. Beijing retaliated with 125 per cent tariffs and is now evaluating its commitments amid increasing uncertainty about the US president’s policies and ensuing trade war.
Why does it matter? Chinese sovereign wealth funds have poured billions of dollars into many of the largest US capital groups over recent decades, becoming among the world’s biggest investors in alternative assets.
Dig deeper:
Beijing has warned it will retaliate against countries that negotiate trade deals with the US “at the expense of China’s interests”.
The dollar weakened as investors responded to mounting uncertainty over US economic policy.
Ruchir Sharma explains how the trade war will reorder the global economy — not burn it down.
Top industry executives have told the FT the geopolitical environment is making people question where to invest.
Here’s what else we’re keeping tabs on today:
War in Ukraine: The conflict continues after a 30-hour “Easter ceasefire” unilaterally declared by Russian President Vladimir Putin, which Kyiv has accused Moscow of breaking.
Markets closed: Canada, Australia, France, Germany, Italy and the UK markets are closed for Easter Monday.
129th Boston Marathon: The world’s oldest annual marathon takes place on the 250th anniversary of Patriots’ Day.
Don’t miss the opportunity to join Unhedged’s Robert Armstrong and other FT experts on Wednesday as they discuss how Trump’s policies are shaping markets in a subscriber-only webinar. Register for free.
Five more top stories
1. Gloom ahead of IMF meetings as global confidence slumps: Global policymakers are awaiting clarity on Trump’s stance towards the IMF and World Bank, with the organisations’ week-long meetings starting today.
2. Problems for Poilievre: A little more than a week from Canada’s general election, Conservative party leader Pierre Poilievre has lost a 25-point lead and trails in every major opinion poll behind Mark Carney’s Liberal party. Can he change the way he campaigns, or is it too late?
3. Ms Reeves goes to Washington: UK chancellor Rachel Reeves will discuss a possible UK-US trade deal when she meets US Treasury secretary Scott Bessent for the first time this week, as well as making the case for global free trade.
4. ‘Battle test’ ahead: US and Philippine forces are to conduct their first “full battle test” for fighting together in flashpoints such as Taiwan or the South China Sea, in a reflection of Washington’s rapidly deepening military engagement with its oldest Asian ally.
5. Second-hand sellers benefit from ‘liberation day’: As Stephanie Stacey reports from the US, thrift stores are betting that the pain conventional retailers are expected to endure from the president’s tariffs will be their gain.
The Big Read
After spending a year on the back foot in the wake of Hamas’s murderous attack, Israeli Prime Minister Benjamin Netanyahu has gone on the offensive. Israeli forces have seized land from neighbours while Netanyahu has pressured Trump to support military action against Iran. At home, Netanyahu’s administration has resumed a bitter power struggle with the judiciary and other pillars of the state. “What we are facing now is an existential crisis,” said a former chief of domestic spy agency Shin Bet.
We’re also reading . . .
Chart of the day
Crypto casino takings have soared to tens of billions of dollars a year, new data shows, as gamblers bypass blocks in their home countries to bet on unregulated offshore platforms. Despite being illegal in most countries, wagers paid in cryptocurrency generated $81.4bn in gross gaming revenue last year — a fivefold rise since 2022.
In other news . . .
Donald Trump seems to be having a big impact on a small ski village in the Swiss Alps. Find out why beautiful Andermatt has seen such a huge surge in property demand from US buyers.
