Good morning. Joe Biden hosted Narendra Modi at the White House for a state visit during which the US and Indian leaders announced defence and technology deals, including a purchase of American spy drones.
Following talks in the Oval Office, Biden told reporters that the partnership between the US and India was “stronger, closer and more dynamic than any time in history”, while Modi spoke of a “new chapter” in the strategic relationship between the two countries.
Ahead of the visit, US officials said India would commit to buying armed MQ-9B SeaGuardian drones, which are produced by US defence contractor General Atomics. The leaders will also announce that memory chipmaker Micron will open a $2.75bn semiconductor assembly and test facility in India, which will include $800mn in investment from the US company.
Biden and Modi also signed an agreement that will result in General Electric co-producing fighter jet engines in India.
The agreements mark a big push by Washington to draw New Delhi into its orbit as part of a strategy to work with allies and partners to counter China. While India maintains a non-aligned foreign policy, it has moved closer to the US amid rising tensions with Beijing.
However, Biden has come under criticism for granting Modi a state visit, given accusations from critics that Indian democracy is under threat and concerns about New Delhi’s treatment of minority Muslims and Christians.
Opinion: Biden is taking flattery of India’s prime minister to new levels, writes Edward Luce.
Indian stock market: The overall value of India’s stock market has surged more than 14 per cent in the past three months as foreign investors buy into the robust economic growth of the world’s most populous country.
Here’s what I’m keeping tabs on today and over the weekend:
Economic data: Japan releases its May consumer price index (CPI) inflation rate figures.
Elections: Guatemala, Sierra Leone and Greece will hold general elections this weekend.
Anniversaries: Today is the seventh anniversary of the Brexit referendum. Saturday is the first anniversary of the US Supreme Court’s decision to overturn Roe vs Wade, the 1973 ruling that enshrined the right to abortion.
Five more top stories
1. The submersible diving to visit the wreckage of the Titanic suffered a “catastrophic implosion,” the US Coast Guard has said, killing the five passengers on board. On Thursday morning, rescuers located a debris field near to the location of the Titanic, which authorities have now confirmed contained the remains of the submersible, known as Titan.
Go deeper: Stockton Rush launched the manned submersible operator OceanGate with vast ambition. Here’s how his vision ended in tragedy for the Titan submersible.
2. The Bank of England has raised interest rates to 5 per cent, a surprise half-point increase, as the central bank and Prime Minister Rishi Sunak vowed to crush persistent inflation.
Related: The BoE’s larger-than-expected rise in interest rates provided only a fleeting boost to sterling as investors bet that the aggressive action from the central bank is likely to help push the UK into a recession later this year.
3. Germany has signed another long-term deal to import more US liquefied natural gas, as Berlin moves to replace Russian energy in its economy amid Moscow’s war in Ukraine. Read more about the deal.
War in Ukraine: Ukraine’s army struck a key bridge connecting the Crimean peninsula and the southern province of Kherson, Moscow-installed officials in both Russian-occupied regions have said.
4. South Korea exported more goods to the US than to China last year for the first time since 2004, underlining shifting trade patterns as Washington draws more allies into its supply chains and Beijing boosts its manufacturing self-reliance. Here are more details on South Korea’s trade figures.
5. Deloitte has resigned as auditor to Byju’s, India’s most highly valued start-up, saying the education technology company had failed to hand over 2021-22 financial results. Read more on the latest blow for the $22bn-valued digital learning company.
How well did you keep up with the news this week? Take our quiz.
News in-depth
Imran Khan is battling for his political survival after Pakistani authorities launched a crackdown on his party, with the popular former prime minister acknowledging that his path back to power is narrowing. The 70-year-old former cricketer, who is out on bail after being arrested last month, is battling dozens more cases from terrorism to murder allegations. “Right now it’s a question of survival,” he told the FT.
We’re also reading . . .
Gillian Tett: The Silicon Valley Bank fiasco shows that banks need to become more imaginative about the future.
Disney’s struggles: Last weekend’s disappointing box office performance of Pixar’s Elemental crystallised the sense that Disney’s studios have fallen into a rut. Is the creative spark at Disney beginning to flicker?
Crypto ‘innovation’: Just because something is new doesn’t mean it is valuable to society or should avoid scrutiny, writes Jemima Kelly.
Chart of the day
China’s rise to dominance in solar has been rapid. In 2010, while Europe installed eight out of every 10 solar panels in the world, it produced only one. This year, China will make eight of every 10 solar panels produced worldwide and add five of those to its grid. In 2023 alone, China will install more new solar capacity than the US has deployed since Americans bought their first panels in the early 1970s.
Take a break from the news
Shanna Swan has been investigating the impact of chemicals on human fertility for decades and believes she knows why sperm counts around the world are falling.
Additional contributions by Tee Zhuo and Gordon Smith
Source: Economy - ft.com
