Aurelia Butler

SANTIAGO (Reuters) -Union leaders at Chile’s state-owned mining firm Codelco, the world’s largest copper producer, reached an agreement with the company on Thursday to end a national strike over the decision to close a smelter located in a highly polluted area. The Federation of Copper Workers (FTC), an umbrella group of Codelco’s unions, started the strike early Wednesday morning after Codelco’s board of directors decided to close its Ventanas smelter on Friday.”We’re officially declaring the end of the strike,” Amador Pantoja, president of the FTC said to reporters outside of Codelco’s headquarters in Santiago after hours of negotiations, adding that strike leaders were already lifting blockades around the country.Workers had blocked roads outside Codelco facilities around the country, lit fires, and held up banners and Chilean flags calling for more investment in the smelter.After spending nearly $156 million over a decade to reduce emissions at the smelter, Codelco decided to close it due ongoing health concerns in the surrounding community, which is home to several industrial companies, citing the smelter’s outdated technology which made it harder to curb emissions.About 350 people worked at the smelter.Thursday’s agreement does not include more investment in the troubled Ventanas smelter, but it involved strengthening the Ventanas copper refinery, Pantoja said without elaborating.”That lets us look forward with optimism and hope,” Pantoja said. Andre Sougarret, Codelco’s interim chief executive, said that the company was starting a working dialogue with workers starting Monday regarding the closure of the Ventanas smelter.”We’re with the workers; we plan on meeting their demands,” Sougarret said, saying that retraining, relocation and exit packages were on the table for workers currently employed at the smelter. Closing the smelter will take years, according to Sougarret and the process is reliant on Congress modifying a law that forces the company to use the Ventanas smelter, which could take months.The smelter is located in a populated area filled with industrial companies and has been the site of multiple pollution incidents that have affected residents’ health and prompted environmental emergencies, including one earlier this month that caused the Ventanas smelter to close. More

How well did you keep up with the news this week? Take our quiz. Singapore will be “brutal and unrelentingly hard” on bad behaviour in the crypto industry, according to its fintech policy chief, marking a stark shift in rhetoric after years of the city-state courting the sector. Sopnendu Mohanty, chief fintech officer at the Monetary Authority of Singapore, the country’s central bank, questioned the value of private cryptocurrencies and said he expected a state-backed alternative to be launched within three years. “We have been called out by many cryptocurrencies for not being friendly,” he told the Financial Times in an interview. “My response has been: friendly for what? Friendly for a real economy or friendly for some unreal economy?” Mohanty added: “We have no tolerance for any market bad behaviour. If somebody has done a bad thing, we are brutal and unrelentingly hard.” The crypto meltdown has hardened the stance of officials in Singapore, where many crypto businesses had been set up because of the perceived friendly regulatory environment and low taxes.Opinion: I would not be ready to bet that private digital money will actually die — mutation seems more likely, writes Gillian Tett.

Video: Cryptocurrencies: how regulators lost control

Do you think Singapore is right to crack down on crypto? Tell me what you think at [email protected]. Thanks for reading FirstFT Asia. Here is the rest of the day’s news — Emily Five more stories in the news1. EU leaders grant Ukraine and Moldova candidate member status EU leaders agreed at a summit on Thursday to make Ukraine and Moldova candidates to join the bloc, a historic move by Brussels in the wake of Vladimir Putin’s invasion of Ukraine.Related read: The EU’s top diplomat has insisted the bloc has no intention of blocking lawful transport of Russian goods to Kaliningrad through Lithuania in comments designed to de-escalate tensions with Moscow.2. China’s zero-Covid strategy has increased risk of flu epidemic Health officials are warning that the country’s focus on eradicating Covid-19 has left it unprepared for a possible flu epidemic that risks killing tens of thousands of citizens. Some health authorities are particularly concerned about a flu outbreak in southern China.3. Toyota recalls EV fleet Toyota is recalling its fleet of 2,700 electric vehicles less than two months after launching its first mass-produced battery-powered sport utility vehicle, which was designed to take on Tesla. The world’s largest carmaker issued the global recall yesterday, warning that the wheels could potentially fall off because of issues with bolts that connect them to the vehicle.4. Early vote could help Najib avoid jail over 1MDB, opposition warns Najib Razak, the former Malaysian prime minister convicted of money laundering linked to the 1MDB scandal, could capitalise on an early general election victory to avoid imprisonment, the country’s opposition leader has warned. Some members of Najib’s party were trying to bring forward the 2023 election so they could consolidate power and influence the judiciary, Anwar Ibrahim said. 5. Investors crank up bets on BoJ surrendering yield curve controls At last week’s policy meeting, the Bank of Japan renewed its pledge to buy as much government debt as it takes to keep 10-year borrowing costs below 0.25 per cent. But pressure is growing on the central bank to lighten its touch, with many investors entering short positions on Japanese government bonds (JGBs).

© BoJ graphic

Thanks to readers who took our poll yesterday. Ninety per cent of respondents said they expect corruption and mismanagement will plague the Philippines’ new administration.The days aheadRemarks from China’s ambassador to Australia Xiao Qian will speak at University of Technology Sydney today and address bilateral relations between the two nations. Japan inflation data Japan will release its consumer price index figures today. CPI inflation is expected to hold steady at 2.5 per cent. (FX Street) UK by-election results When results are announced on Friday, Conservatives are braced to lose two parliamentary by-elections, according to senior party strategists, in moves that could prompt a renewed backlash against Boris Johnson.What else we’re readingShe was loved for standing up to China. She may die in jail Over the years that Claudia Mo has been warning of China’s growing authoritarianism towards Hong Kong, her sense of humour and honesty that have made her a beloved figure among democracy supporters. Later this year, Mo, one of the Hong Kong 47, will find out if she is to spend the rest of her life in jail.Taiwanese military training must be improved Rising tensions in US-China relations, coupled with the war in Ukraine, have accelerated Taiwan’s consideration of military reforms. The most popular plan is to triple the length of compulsory service. “Such lengthening of service will do little . . . to prepare my country for a possible Chinese invasion. My own experience did not do much to prepare my comrades and me for war,” a former servicemember writes. The time to put Donald Trump on trial is drawing near The evidence amassed by the US House of Representatives’ January 6 committee is making it much harder for US Attorney-General Merrick Garland to turn a blind eye. But any prosecution of the former president comes with acute risks, writes Edward Luce.Revlon has become a meme stock Revlon shares have zoomed from about $1 a share to $8 a share — less than a week after the company was placed in bankruptcy. But don’t expect a resurgence in the company’s fortunes reminiscent of car hire company Hertz, says Sujeet Indap.Food crisis bites across Africa Steep global rises in food, fuel and fertiliser prices since Russia’s invasion of Ukraine have compounded economic pain from the coronavirus pandemic and left millions of Africans facing an “unprecedented food emergency”, the World Food Programme has warned. It has also raised the risk of social unrest in poorer countries.

© Food in Africa graphic

FashionAutomation, digitisation and globalisation have brought us incredible material abundance at very low prices. This is, in itself, a good thing, and it is not just a story of iniquity and waste. We should insist on sustainability, but also celebrate good, cheap clothes, writes Robert Armstrong. More

MEXICO CITY (Reuters) -The Bank of Mexico on Thursday increased its benchmark interest rate by a record 75 basis points to 7.75%, saying it would hike rates again and by as much if necessary to tame inflation that has surged to double its target.Inflation in the year through mid-June hit 7.88%, data showed earlier in the day, well above the central bank’s target of 3%, plus or minus one percentage point..”For the next policy decisions, the board intends to continue raising the reference rate and will evaluate taking the same forceful measures if conditions so require,” the bank said in a post-meeting statement after its ninth hike in a row.All five board members voted unanimously for the rate increase, the largest hike under the Bank of Mexico’s current regime, in place since 2008.Banxico, as the bank is known, has been trying to moderate spiraling consumer prices. It has increased the benchmark rate by 375 basis points since mid-2021.Thursday’s move echoes the U.S. Federal Reserve’s hike last week of three-quarters of a percentage point, its largest increase in more than 25 years. Policy makers in regional powerhouse Brazil raised rates to 13.25% and penciled in another hike for August.Banxico underscored that in addition to inflationary shocks from the COVID-19 pandemic, there are pressures linked to Russia’s war in Ukraine and strict lockdown measures imposed by China.”The balance of risks for the trajectory of inflation within the forecast horizon is biased significantly to the upside,” said Banxico.In view of pressures on prices, Banxico revised up its forecasts for headline and core inflation. However, the bank still expects inflation to converge to its 3% target in the first quarter of 2024.”Further tightening of the U.S. monetary policy, a prolonged duration of Russia’s invasion of Ukraine and supply chain disruptions from China’s lockdown measures will result in further rate hikes from Banxico in the near term,” said Carlos Morales, director, Latin America Sovereigns at Fitch Ratings.Morales projected Banxico would hike rates to 8.5% by the end of 2022. More

The companies signed up for $9.4 billion in new loans, leases and lines of credit, compared with $8.1 billion a year earlier.”The economy continues to provide jobs and corporate America, in general, reports strong balance sheets – all in the face of a waning health pandemic,” Ralph Petta, ELFA’s chief executive officer, said in a statement.”Offsetting this good news is high inflation, creating havoc for many consumers, and continued supply chain disruptions and higher interest rates”, Petta added.ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals totaled 76.8%, down from 77.4% in April.The sustained rising interest rate environment, a pandemic overhang and extreme supply chain bottlenecks have pushed for a greater need in the equipment financing industry, said Scott Dienes, senior vice president of Associated Bank, which offers machinery loans.Washington-based ELFA’s leasing and finance index measures the volume of commercial equipment financed in the United States.The index is based on a survey of 25 members, including Bank of America Corp (NYSE:BAC), and financing affiliates or units of Caterpillar Inc (NYSE:CAT), Dell Technologies (NYSE:DELL) Inc, Siemens AG (OTC:SIEGY), Canon Inc and Volvo AB (OTC:VLVLY).The Equipment Leasing and Finance Foundation, ELFA’s non-profit affiliate, said its confidence index for June was 50.9, up from 49.6 in May. A reading above 50 indicates a positive business outlook. More