China’s hypersonic weapon test in July included a technological advance that enabled it to fire a missile as it approached its target travelling at least five times the speed of sound — a capability no country has previously demonstrated.
Pentagon scientists were caught off guard by the advance, which allowed the hypersonic glide vehicle, a manoeuvrable spacecraft that can carry a nuclear warhead, to fire a separate missile mid-flight over the South China Sea, according to people familiar with the intelligence.
Experts at Darpa, the Pentagon’s advanced research agency, remain unsure how China overcame the constraints of physics by firing countermeasures from a vehicle travelling at hypersonic speeds, said the people familiar with details of the demonstration.
Military experts have been poring over data related to the test to understand how China mastered the technology. They are also debating the purpose of the projectile, which was fired by the hypersonic vehicle with no obvious target of its own, before plunging into the water.
What’s your reaction to the news of China’s advance? Tell me what you think at firstft@ft.com. Thanks for reading FirstFT Asia. — Emily
Five more stories in the news
1. KKR makes €33bn buyout offer for Telecom Italia The US buyout fund has launched a more than €33bn offer to take Telecom Italia private in what would be one of the largest private equity buyouts of a European company in history.
2. Olympics chief holds video call with missing Chinese tennis star Thomas Bach said he held a 30-minute video call with Peng Shuai on Sunday, with the International Olympic Committee stating she was “safe and well” in Beijing but that she “would like to have her privacy respected at this time”.
3. El Salvador plans ‘bitcoin city’ powered by volcano President Nayib Bukele has said the Central American country plans to build a volcano-powered “bitcoin city” financed partly by an issue of $1bn in sovereign bonds backed by the cryptocurrency.
4. Samsung investors look for guidance on $100bn cash pile Samsung’s most powerful executive is touring the US in what investors hope is a sign the company is looking to deploy its $100bn cash pile. Third-generation heir Lee Jae-yong is on his first overseas trip since he was released from jail early on the grounds it was in the national interest.
5. India’s PM abandons unpopular farm reforms India’s prime minister will abandon contentious agricultural market reforms that sparked year-long protests from Indian farmers and a major challenge to his authority.
We forgot to include our quiz last Friday. Apologies for the error! You can still test your knowledge here.
Coronavirus digest
Europe’s protests against Covid-19 curbs spread to Brussels yesterday, where a march of tens of thousands of demonstrators later turned violent.
Japan’s new prime minister unveiled a ¥43.7tn ($383bn) stimulus package on Friday to boost the country’s lagging recovery from the pandemic.
The Bank of England will have to raise interest rates if the economy evolves as expected, but the situation is “febrile”, with data giving a mixed picture.
Austria’s government has said it will put forward legislation to make vaccination against coronavirus mandatory for all citizens from early next year.
America’s largest retailers are weathering the supply chain storm while smaller rivals struggle to secure supplies, according to new data.
Join over 100 influential leaders and the FT’s top journalists from across America and around the world for the Global Boardroom conference as they discuss how to build resilient, sustainable, inclusive economies and businesses in a world transformed by crisis. Register for free here.
The days ahead
China policy rate decision Policymakers are expected to keep China’s benchmark interest rate steady as they seek to limit risk in the real estate sector. (Reuters)
Thailand economic data The nation’s third-quarter employment data and household debt figures are set to be published.
World Trade Organization meeting The general council of the WTO will meet in Geneva, Switzerland.
What else we’re reading
The Spac machine sputters back Spac sponsors hope that the market’s new signs of life signal it is maturing. Some have drawn analogies with the junk bond market, which went through a frenzied boom period followed by scandal in the 1980s before eventually becoming an integral part of the modern financial system.
Key US commission heralds the coming capital wars If there’s one thing both Republicans and Democrats can agree on, it’s that China is America’s biggest long-term strategic threat. And yet US financial firms couldn’t be more bullish on the Middle Kingdom, writes Rana Foroohar.
Rise of Crypto.com The site started as the blog of a University of Pennsylvania professor, who sold the name in 2018 to a little-known start-up dabbling in cryptocurrency and credit cards called Monaco. From Christmas Day, its name will be emblazoned on the iconic Los Angeles arena.
Related read: In an age when trading apps have made investment cool and cryptocurrencies have whipped the untrained teen mind into a frenzy, Lucy Kellaway looks at some ways we can turn children into financially literate adults.
The EU’s fiscal rules need more than technical tweaks In Freudian psychoanalysis, neurotic behaviour is the manifestation of repressed feelings. In the EU’s obsession with codified rules, it is politics that is being repressed. That is why the newly relaunched debate on the bloc’s fiscal rules is going to be difficult, writes Martin Sandbu.
The British cup of tea needs a spoonful of sophistication The British are said to love little more than a cup of tea, but that affection is not shared by Unilever. Its €4.5bn sale of some of the world’s biggest tea brands shows how unsentimental companies can be. It also raises an unsettling question: is black tea, brewed in a teapot and served with milk, becoming a relic?
House & Home
Could you work from home in the Alps? During the pandemic, some skiers have been doing just that. FT’s Liz Rowlinson explores whether the romantic vision tallies with the reality.
Source: Economy - ft.com
