Aurelia Butler

Britain said the Secretary of State proposed to accept Parker’s undertakings but it has launched public consultations and will wait till the consultation period concludes on July 13 before making a final decision. The British government was probing the deal, the latest by a U.S. buyer of a British firm, over competition and national security concerns, as Meggitt’s customers include Boeing (NYSE:BA), Airbus, Britain’s Ministry of Defence (MoD) and Rolls-Royce (OTC:RYCEY).Parker in May had agreed to sell its aircraft wheel & brake division to industrial machinery maker Kaman (NYSE:KAMN) Corp for $440 million, which London said addressed its competition-related queries.Meggitt supplies wheel and brake systems for military fighter programmes, and Parker’s unit sale to Kaman resolves concerns about overlapping activities with Meggitt.The British government added that Parker also committed to honour its existing contracts to its defence ministry and agreed to protect sensitive government information in Meggitt.Following UK’s regulatory update, Parker said it still expected to close the deal in third quarter of this year.”We are pleased that following very constructive engagement with the UK Government, the Secretary of State is minded to accept the national security and competition undertakings we have offered,” Parkerom Williams, the chief executive of Parker said in a statement.The deal won EU antitrust approval in April.Meggitt did not respond to Reuters’ request for comment. ($1 = 0.8209 pounds) More

Turkey has dropped its opposition to Finland and Sweden becoming members of Nato, paving the way for the Nordic countries to join the alliance in response to Russia’s invasion of Ukraine.The three countries have signed a joint memorandum after hours of talks on Tuesday brokered by Nato, ending a six-week long veto by Ankara linked to terrorism concerns. The agreement on the eve of Nato’s annual summit in Madrid ends a dispute that threatened to overshadow an event billed as showing unity against Russia, support for Ukraine and the alliance’s 10-year “strategic concept” designed to revamp its approach to defending its eastern European allies.Nato officials drafting the 10-year strategy have also had intense discussions on China, people briefed on the process told the FT, reflecting the range of economic ties that Nato members have with Beijing and different perceptions of the threat posed by China. China dismissed the doctrine change as “old wine, new bottle”, accusing Nato of having a “cold war mentality” and “clinging to archaic security concepts”What do you think of the approach Nato is taking with China? Tell me what you think at [email protected]. Thanks for reading FirstFT Asia. — Emily Five more stories in the news1. China slashes quarantine restrictions as Covid cases fall China has cut its required quarantine period for international travellers by half, to one week, in the first significant nationwide relaxation of restrictions since Covid-19 outbreaks in Shanghai and Beijing this year prompted draconian curbs on travel and economic activity. 2. Trump wanted to march on Capitol with mob, ex-aide says Donald Trump tried to head to the Capitol with his mob of supporters on January 6 last year, even after being told they were carrying weapons, according to former White House aide Cassidy Hutchinson’s testimony to Congress. Trump was stopped by the Secret Service, leading to an altercation inside the presidential vehicle in which he tried to grab its steering wheel.Related read: Donald Trump’s chief of staff was warned by a White House lawyer that “blood’s going to be on your fucking hands” in the instance of any violence at the US Capitol on January 6, a congressional committee heard.

Cassidy Hutchinson testifies to the January 6 committee on Tuesday © AP

3. Maxwell sentenced to 20 years for aiding Epstein’s abuse Ghislaine Maxwell was sentenced to 20 years in prison after she was convicted for her years-long role helping to lure and groom underage girls for the late sex offender Jeffrey Epstein to abuse. Judge Alison Nathan announced the sentence on Tuesday in a federal courthouse in Manhattan. 4. G7 accused of ‘backsliding’ on climate goals In its final communiqué from this week’s summit, the G7 said investment in liquefied natural gas was a “necessary response to the current crisis”. Climate groups have criticised the G7 for failing to deliver new climate finance pledges, and for its renewed focus on gas.Explainer: How the G7 countries plan to hurt Russia’s oil bonanza5. KKR takes back seat in Toshiba bidding process US private equity firm KKR is stepping back from a potential $22bn bidding war for the future of Toshiba, people familiar with the talks said, leaving its main rival Bain Capital in pole position to pull off Japan’s biggest take-private deal.The day aheadJapan retail figures Data for May is set to be released today. Earlier this month, the head of Japan’s biggest discount store vowed to defend its price tag of ¥100 ($0.75) per item despite an existential threat to the business from global inflation and the plunging yen.UK Parliament hearing on UK-Australia trade deal MPs will question International Trade Secretary Anne-Marie Trevelyan on the UK’s free trade agreement with Australia. US GDP figures US gross domestic product figures for the first quarter will be released today. The IMF on Friday lowered its growth forecast for the US in 2022 to 3.7 per cent from 2.9 per cent. (Reuters) Opinion: The recession should kill off the romantic idea that growth is a mixed blessing, writes Janan Ganesh.Join us online today for our FT Live event, The Evolution of Thematic Investing, where we’ll discuss the next chapter in thematic investing and key trends in technology, innovation, and sustainability affecting investors in the APAC region. Register for free here.What else we’re reading and listening to China’s Covid health apps govern life but are ripe for abuse Everyday life for most of China’s 1.4bn citizens hinges on the colour of a health code on a smartphone app. The Chinese government insists the system is purely for health purposes, but they have already been used by some officials as a tool of social control.The billionaire who took down porn The biggest porn company in the world was transformed almost overnight by a hedge fund billionaire. It started with a scathing column he read about a popular porn site and an angry text to one of finance’s most powerful CEOs. The latest episode of the Hot Money podcast explores what happened next.Australia’s honey bees are on lock down Australia is locking down its honey bees as it applies the lessons learnt from implementing one of the world’s most restrictive Covid-19 regimes to block another threat — a parasite that is wiping out hives around the world.

Australia was the only region in the world that had managed to contain the varroa mite, a parasite that has been blamed in part for the decline of bee populations globally © Gavin John/Bloomberg

Foreign business in Hong Kong looks to the long term Despite erosion of freedoms, companies and investors are prioritising access to the capital markets oasis, writes Tom Mitchell. Most financial services professionals say the national security law is not an existential concern for their employers.China’s pivotal role under scrutiny as Zambia seeks debt relief With Beijing now the biggest bilateral lender to low-income countries, Zambia’s travails are a test case of its willingness to take the lead in restructuring the debt obligations of defaulting states. With Sri Lanka in default and Pakistan close to it, other countries that are heavily indebted to Beijing are keeping a close eye on proceedings in Lusaka.TravelAs a long-haul pilot, Mark Vanhoenacker has discovered several specialised tactics to beating jet lag. Among Vanhoenacker’s tried-and-tested strategies: ice-cold showers, catnaps and practising good “sleep hygiene”. More

WASHINGTON (Reuters) -U.S. President Joe Biden’s administration added five companies in China to a trade blacklist on Tuesday for allegedly supporting Russia’s military and defense industrial base, flexing its muscle to enforce sanctions against Moscow over its invasion of Ukraine.The Commerce Department, which oversees the blacklist, said the targeted companies had supplied items to Russian “entities of concern” before the Feb. 24 invasion, adding that they “continue to contract to supply Russian entity listed and sanctioned parties.”The agency also added another 31 entities to the blacklist from countries that include Russia, UAE, Lithuania, Pakistan, Singapore, the United Kingdom, Uzbekistan and Vietnam, according to the Federal Register entry. Of the 36 total companies added, 25 had China-based operations. “Today’s action sends a powerful message to entities and individuals across the globe that if they seek to support Russia, the United States will cut them off as well,” Under Secretary of Commerce for Industry and Security Alan Estevez said in a statement.The Chinese embassy in Washington did not respond to the allegations against the companies, but said Beijing had not provided military assistance to Russia or Ukraine. It said it would take “necessary measures” to protect the rights of its companies, arguing that the sanctions violate international law.Three of the companies in China accused of aiding the Russian military, Connec Electronic Ltd, Hong Kong-based World Jetta, and Logistics Limited, could not be reached for comment. The other two, King Pai Technology Co, Ltd and Winninc Electronic did not immediately respond to requests for comment.Hong Kong is considered part of China for purposes of U.S. export controls since Beijing’s crackdown on the city’s autonomy.The firms’ blacklisting means their U.S. suppliers need a Commerce Department license before they can ship items to them.The United States has set out with allies to punish Russian President Vladimir Putin for the invasion, which Moscow calls a “special operation”, by sanctioning a raft of Russian companies and oligarchs and adding others to a trade blacklist. While U.S. officials had previously said that China was generally complying with the restrictions, Washington has vowed to closely monitor compliance and rigorously enforce the regulations.”We will not hesitate to act, regardless of where a party is located, if they are violating U.S. law,” Assistant Secretary of Commerce for Export Administration Thea Rozman Kendler said in the same statement. More

In the lawsuit, 11 states, plus Brazil’s federal district, allege that the law represents an unprecedented intervention by the federal government.The tax cut, analysts say, weakens the competitiveness of ethanol against gasoline and could impact the global sugar market by prompting sugarcane processors to reduce ethanol production and increase sugar output.The move comes after the states of Sao Paulo and Goias voluntarily cut their own state ICMS taxes. More

The consumer sentiment index (CSI) dropped to 96.4 in June from 102.6 in May, marking the lowest since January 2021 and the biggest monthly fall since July 2021, according to the Bank of Korea’s survey of consumers.The index fell below the 100-mark, which is a dividing line between optimism and pessimism, for the first time since February 2021. Consumers’ inflation expectations for the next 12 months rose to 3.9% from 3.3% the previous month, hitting the highest since April 2012, according to the survey responses from more than 2,300 households.South Korea’s consumer inflation in May hit a near 14-year high of 5.4%, and the country’s finance minister said on Sunday it may top 6% as early as in June. More

“Many are worried that the Fed might be acting too aggressively and maybe tip the economy into recession,” San Francisco Fed President Mary Daly said in an interview on LinkedIn. “I am myself worried that left unbridled, inflation would be a major constraint and threat to the U.S economy and continued expansion.”The Fed, she said, is therefore “tapping the brakes” by raising interest rates to cool demand.”We are working towards that as quickly as we possibly can, and hopefully Americans everywhere will start to see some relief in their pocketbooks,” she said, adding that she expects the economy to slow but not stop growing.The Fed earlier this month raised rates by three-quarters of a percentage point — its biggest rate hike since 1994 — to a range of 1.5%-1.75% to battle inflation that is at a 40-year high. Daly last week said she believes another 75 basis-point rate hike next month will be warranted, though on Tuesday she was not asked specifically about July’s meeting.New York Federal Reserve Bank President John Williams also said he sees the need to act decisively to curb inflation.”We need to move expeditiously,” Williams said in an interview on CNBC. “In terms of our next meeting I think 50 (basis points) or 75 is clearly going to be the debate.” Both Daly and Williams said they expect the unemployment rate to move up a few tenths of a percentage point, from its current 3.6% level, but they both said the labor market is strong and the economy has enough momentum that they do not expect a recession.In an essay published Tuesday https://www.stlouisfed.org/publications/regional-economist/2022/june/getting-ahead-of-inflation-lesson-1974-1983, St. Louis Fed President James Bullard pointed to two past examples, in 1983 and 1994, when the Fed raised rates but did not trigger a recession, and said the central bank should aim to follow that example.The Fed’s “forward guidance that additional policy rate increases are likely in coming months is a deliberate step to help the FOMC more quickly move policy as necessary to bring inflation back in line with the Fed’s 2% target,” Bullard wrote.The Federal Open Market Committee, known as the FOMC, is the Fed’s policy-setting body.U.S. consumer confidence dropped to a 16-month low in June on worries about inflation, data from the Conference Board showed Tuesday, a signal that Daly said she is watching closely.”Getting people to feel comfortable that the dollar they earn today will pay for the goods they want tomorrow — that is no longer something people feel that confident in, and we’ve got to restore that confidence,” she said. More