China’s premier warned “some in the west” of “hyping up . . . reducing dependencies and de-risking”, arguing such positions were a “false proposition” in a speech delivered in front of an international audience in China.
Li Qiang, China’s second most powerful person behind President Xi Jinping, was giving the keynote address at a World Economic Forum event in the northern Chinese port city of Tianjin.
“Governments should not over-reach themselves, still less stretch the concept of risk or turn it into an ideological tool,” he warned.
The speech was a clear response to western governments’ attempts to limit co-operation with China as tensions rise between Beijing and Washington.
The audience included New Zealand prime minister Chris Hipkins and World Trade Organization director-general Ngozi Okonjo-Iweala. It is the first time the so-called Summer Davos event has been held in person since the pandemic.
Even though there were few top American business leaders at the event there have been some high-profile visits by US chief executives to China recently as the country opens up from the harsh lockdowns that shut down the economy.
Apple’s Tim Cook, Tesla chief Elon Musk and JPMorgan Chase chief executive Jamie Dimon have all recently visited China.
Here’s what else I’m keeping tabs on today:
Economic data: The S&P Case-Shiller index of US house prices, durable goods orders and consumer confidence data are all released today.
Results: Pharmacy chain Walgreens Boots Alliance reports earnings.
Investor Day: Delta Air Lines holds an event for investors and is expected to detail its medium and long-term business strategy.
Five more top stories
1. Russia’s defence ministry said today that the Wagner paramilitary group was preparing to hand over its weapons to the regular army, in a further sign of Vladimir Putin reasserting control after the failed insurrection over the weekend. Russia’s main security service, the FSB, said it had closed its investigation into the rebellion in a further step towards solving the stand-off. Read more on the latest fallout from the failed rebellion.
2. KPMG is cutting 5 per cent of its US workforce in the second round of job cuts this year as it struggles with the slowdown in demand for its consulting services. While the cuts in February only affected the advisory business the reductions announced to staff yesterday are expected to hit all areas of the business. Read more on the email sent to all KPMG staff.
3. HSBC is to move its global headquarters from the Canary Wharf business district in east London to smaller premises near St Pauls in the City of London as it copes with the rise of homeworking. Read more about the latest blow to Canary Wharf’s reputation.
More commercial property news: New York City’s largest office landlord has agreed to sell a stake in Manhattan’s 245 Park Avenue building to Japan’s Mori Trust, in one of the largest office transactions since US interest rates started to rise.
4. Central banks must accept the “uncomfortable truth” that they may have to tolerate a longer period of inflation above their 2 per cent target in order to avert a financial crisis, the deputy head of the IMF has told the Financial Times. Read the full interview with Gita Gopinath.
5. The top banking regulator under President Donald Trump has teamed up with a former risk officer at recently failed Silicon Valley Bank to launch a bank. Read more about Randy Quarles’s plans for Currency Reserve, a bank that does not plan to make loans or take deposits.
The Big Read
From filling British taps with water to transporting gas across the southern US, Macquarie has become quietly ubiquitous in global infrastructure, stepping in as governments privatise assets. Now, with chief executive Shemara Wikramanayake focused on climate change, renewable energy and digital infrastructure investments, few expect the Australian company’s influence to diminish.
We’re also reading and listening to . . .
Interview: The chief executive of Hong Kong’s stock exchange has told the FT that he believes more international companies will be attracted to list in the territory because of China’s army of retail investors.
Corporate jets: US corporate spending on jet travel jumped for the second year in a row, according to new data, highlighting how companies continue to spend on flying perks they insisted were needed during the Covid-19 pandemic.
Money Clinic podcast 🎧: Worried about your overstretched wallets? Don’t panic yet. Experts offer strategies and solutions on how to navigate the challenging times ahead.
Number of the day
Vitol and Gunvor, two of the world’s largest independent energy traders, remain significant buyers of refined oil from Russia more than a year after both companies pledged to drastically reduce their business with Moscow. Many other European oil traders, including BP and Shell, have ceased dealing with Russian oil entirely. Read more on the FT’s investigation into the trading of energy from Russia.
Take a break from the news
FT readers picked their favourite swimming spots around the world, from Tel Aviv to Texas via Sydney and San Francisco. Share you own selections for the best place to take an open-air dip in the city in the comments at the bottom of the story.
Additional contributions by Grace Ramos and Benjamin Wilhelm
Source: Economy - ft.com
