Aurelia Butler

The US Bureau of Labor Statistics was forced to publicly discredit a fake inflation data report that circulated on Tuesday, just one day before the scheduled release.The document, which sought to mirror the formatting of the monthly consumer price index report, claimed annual inflation in June reached 10.2 per cent, much higher than economists’ forecasts of an 8.8 per cent jump.But the chart featured in the forged report did not match the text, which was one of several signs it was fabricated.“We’re aware of a fake CPI release image circulating on Twitter. It is a fake. Stay tuned for the real CPI release tomorrow at 8:30 AM ET,” the BLS wrote on Twitter.While the fake document began circulating as early as 11:30am ET, US stocks dipped in mid-afternoon trade in New York as the false report gained traction. The blue-chip S&P 500 index, which had been vacillating between small gains and losses throughout the day, fell into negative territory around 2pm ET for the remainder of the session. The S&P retraced part of that decline going into the close, ultimately ending the day down 0.9 per cent. The tech-heavy Nasdaq Composite followed the same pattern as the S&P, also ending the day down 0.9 per cent. June’s inflation report comes at an incredibly sensitive moment for financial markets and the US economy more broadly, as the Federal Reserve steps up its efforts to quell soaring prices. Last month, the US central bank delivered the first 0.75 percentage point interest rate increase since 1994 after the May CPI report showed a sharp acceleration in the rate of inflation. Economists expect another similar “jumbo” rate rise when the Fed meets at the end of the month. The White House this week has sought to manage expectations around the June figures, acknowledging that they will be “highly elevated” albeit “backwards-looking”. Energy prices have fallen sharply recently, a trend that will not be captured in the data due out Wednesday. More

Twitter has asked a Delaware court to force billionaire entrepreneur Elon Musk to honour his $44bn agreement to buy the social media company.In a complaint filed in Delaware chancery court on Tuesday, lawyers for Twitter said Musk should be compelled to complete the merger at the $54.20 per share price agreed when the deal was struck in late April. “Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” according to the complaint. “This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business,” it added.The move sets the stage for a messy legal battle between the Silicon Valley company and one of its most prolific and powerful users. Do you think Musk should be compelled to honour his deal to buy Twitter? Let me know what you think at [email protected]. Thanks for reading FirstFT Asia. — Emily Five more stories in the news1. Nato and EU sound alarm over risk of Ukraine weapons smuggling The two blocs are pushing for better tracking of weapons supplied to Ukraine in response to fears that criminal groups are smuggling them out of the country and on to Europe’s black market. More on the war in Ukraine: Iran is preparing to supply Russia with hundreds of drones and other unmanned aerial vehicles to support Vladimir Putin’s invasion of Ukraine, the White House has said. 2. Trump pressed election fraud claims despite advisers’ doubts Donald Trump was told by almost all of his close advisers that he had lost the 2020 US election and yet continued to insist it had been stolen, a congressional committee has heard. Trump’s advisers screamed at each other during an “unhinged” White House meeting in December 2020 as they argued over whether the former president should concede the presidential election, witnesses said.3. BYD shares tumble Shares in Chinese electric carmaker BYD fell 12 per cent after a stake close to the size of Berkshire Hathaway’s appeared in the Hong Kong stock exchange clearing system. Berkshire told investors in February that it owned a 7.7 per cent stake in the company, valued at $7.7bn. Last week BYD overtook Tesla to become the world’s biggest electric vehicle producer by sales.4. US and Japan to tackle exchange volatility The US and Japan have agreed to “co-operate as appropriate” to address the falling value of the yen against the dollar after a meeting between US Treasury secretary Janet Yellen and her Japanese counterpart Shunichi Suzuki. 5. Singapore’s Temasek to slow pace of investment Singapore state-owned fund Temasek, one of the world’s largest investors, reported a sharp drop in returns and warned it would be “cautious” about new investment amid a deteriorating economic outlook. Temasek said that downturns in China and the technology sector in particular had weighed down on its performance.The day aheadNew Zealand and South Korea rate setting meetings Policymakers at the Reserve Bank of New Zealand and the Bank of Korea will meet tomorrow to set interest rates. Both are expected to deliver 50 basis point rate hikes as they fight inflation, according to recent polls. (Reuters) Inflation tracker: See how your country compares on rising pricesChina trade figures Amid rising prices, global trade has weakened. This will probably affect the country’s June trade data set to be released today. (Bloomberg) Kamala Harris speaks to the Pacific Islands Forum The vice-president is expected to announce the US’s plans to open embassies in Kiribati and Tonga and to ask Congress for more money to help Pacific island nations tackle illegal fishing in its latest effort to push back against China in the Indo-Pacific.Voting begins in Conservative party leadership race MPs will begin voting for the party’s next leader today. Former chancellor Rishi Sunak has emerged as the favourite. Here are the eight candidates in the race to be the UK’s next prime minister. What else we’re readingAbe’s death gives Kishida a chance to make his mark The assassination of Shinzo Abe, Japan’s longest-serving prime minister, has left a profound void in the governing Liberal Democratic party — and created an extraordinary opportunity for prime minister Fumio Kishida to stamp his own mark on Japanese politics.Webb telescope images reveal dance of ancient galaxies Space scientists have revealed a series of stunning images from the first observing run of the James Webb Space Telescope, including five galaxies engaged in a brilliant cosmic dance and a nebula exploding around a pair of dying stars.

A cosmic composite of the first images from the James Webb Space Telescope © ESA/Webb/AFP via Getty Images

The new agricultural frontier After years of laboratory testing, companies are now racing to scale up their operations for the commercial production of plants, and hoping to beat competitors to a dominant share of what could be a vast market.Executives seek briefings on Taiwan war risk Company executives are increasingly concerned about the possibility of war over Taiwan, according to consultants who have seen a sharp rise in demand for briefings following the invasion of Ukraine.Lipsticks, lattes and labradors: JAB’s bet on pets After spending more than $50bn on coffee chains, restaurants and cosmetic companies, the European group has found a cute solution to boosting its mixed returns: pets. But its investments in vets and insurance are under scrutiny from competition officials.ArtShould artists have a stake in their own work? The resurgent $65bn art market has led to rampant speculation around the work of young artists — who see little of the profit. More

LOS ANGELES (Reuters) – U.S. President Joe Biden faces a deadline next week to intervene in nationwide U.S. railroad labor talks covering 115,000 workers, or open the door to a potential strike or lockout that could threaten an already fragile economy and choke supplies of food and fuel.     The stakes are high for Biden, who wants to tackle inflation-stoking supply-chain woes and is already working to reach a deal in the critical labor talks at West Coast seaports.If the president declines to intercede in the railroad labor negotiations by appointing a Presidential Emergency Board (PEB) before 12:01 a.m. EDT on Monday, the railroads and unions could opt for operational shutdowns or strikes, respectively. If appointed, the board would make recommendations that could be used as a framework for a voluntary settlement. A White House official told Reuters the administration “is going through the standard process that has been used in the past when considering a PEB.” The White House declined further comment.Parties in the current talks expect Biden to appoint a board as President Barack Obama did to help resolve a wage and healthcare benefit standoff at the largest freight railroads in 2011. “People in the executive branch and in Congress know how vital our freight rail system is to our economy,” said Greg Regan, president of the AFL-CIO Transportation Trades Department that represents several railroad unions. “You’re going to see a similar amount of pressure to reach an agreement that you’re seeing on the port side,” he added. U.S. business groups representing retailers and food and fuel producers in letters to Biden have warned that failing to appoint a PEB would be “disastrous” for the softening economy. Railroads move everything from Amazon (NASDAQ:AMZN) packages to fuel oil and soybeans, and a shutdown of any kind could send prices for necessities higher and upend battered supply chains. The railroad talks come at a bad time for Biden, whose administration is also dealing with negotiations covering more than 22,000 U.S. West Coast workers at 29 seaports stretching from Washington to California, including the nation’s busiest at Los Angeles/Long Beach. The contract expired on July 1 and the two sides are wrestling over issues ranging from pay to automation. Talks between major freight railroads, including Union Pacific (NYSE:UNP) and Berkshire Hathaway-owned BNSF, and unions representing their workers have dragged out more than two years. If appointed, the PEB has 30 days to make nonbinding settlement recommendations. Work stoppages are prohibited during that time and for 30 days following the release of the report.If employers or unions reject the recommendations, Congress can intervene.     The Brotherhood of Locomotive Engineers and Trainmen (BLET) that represents 23,000 workers affected by the negotiations, on Tuesday said more than 99% of members voted to authorize a strike, should union leaders deem it necessary. The vote was mandated by union bylaws. The American railroad industry is already plagued by disruptions stemming from self-inflicted staffing shortages that have crimped fertilizer shipments, caused backups at major U.S. seaports and stopped feed from reaching Foster Farms’ chickens in California. Graphic: https://tmsnrt.rs/3ytlpIk GRAPHIC: Staff reductions by railroad company (https://graphics.reuters.com/SUPPLY-CHAIN/egvbkxkxwpq/chart_eikon.jpg) The leader of the independent federal agency that regulates the industry had harsh criticism in May, saying the railroads have slashed 45,000 jobs, almost 30% of their workforce, in the past six years. Graphic: https://tmsnrt.rs/3yvnYto GRAPHIC: Off track: America’s shrinking railroad worker ranks (https://graphics.reuters.com/SUPPLY-CHAIN/jnpwededapw/chart.png) “They’ve cut below the bone,” Martin Oberman, chairman of the Surface Transportation Board, said at a U.S. House of Representatives committee hearing. “Rail service is unacceptably poor …. All stakeholders agree the problem is principally caused by a shortage of labor,” Oberman said. U.S. freight railroads have assured investors they are making progress with hiring and retention as they negotiate with unions over pay, time off and healthcare cost sharing. Railroads, unions and customers hope to avoid a repeat of 1992. Back then, railroads shut down for two days after the International Association of Machinists struck CSX Corp (NASDAQ:CSX), and the nation’s railroads responded by ceasing operations, saying a strike against one railroad was a strike against all railroads. At the time, experts warned the impact of the rail disruption could grow from $50 million per day at the outset to $1 billion per day for an extended action.”It remains in the best interests of all parties – and the public – to settle this dispute, provide for prompt pay increases for all rail employees, and prevent rail service disruptions,” the National Railway Labor Conference (NRLC) said in a negotiations update. More