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Good morning. We have now a number of unique tales at this time, together with on an elite US Navy unit planning for a possible Chinese language invasion of Taiwan and Spain blocking the Hungarian takeover of a Madrid-based practice group over Ukraine-related considerations. Extra particulars beneath.
However first, we flip to Brussels, the place EU officers are inspecting methods to roll over lots of of billions of euros of Covid-era bonds as a way to keep away from the bloc’s widespread price range being overwhelmed by compensation prices.
Such a transfer, backed as an choice by former Italian premier Mario Draghi, would prolong as a lot as €350bn of unprecedented pandemic-era EU borrowing, in accordance with folks aware of the problem. Discussions are at an early stage over the right way to design an answer that might overcome staunch opposition from capitals comparable to Berlin and vital authorized constraints, in addition to win over buyers.
However officers in Brussels worry the compensation prices, if unaddressed, might hobble the EU’s spending energy in coming years. Draghi warned in a report this week that the looming obligations — and the unwillingness of EU states to provide Brussels revenue-raising powers or more cash — left the EU going through a debilitating price range crunch. We have now extra on the choice to roll over debt, offered by Draghi in his 400-page report this week.
Right here’s what else I’m holding tabs on at this time:
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ECB charge resolution: Traders count on the European Central Financial institution to decrease borrowing prices at this time and shall be on the lookout for hints of one other reduce in October.
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Oil costs: The Worldwide Power Company publishes its oil market report. Brent crude tumbled out of its year-long buying and selling vary on Tuesday as buyers grew more and more nervous about slowing demand.
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UK politics: Prime Minister Sir Keir Starmer responds to an official overview discovering the NHS in “critical condition”. His chancellor Rachel Reeves and Financial institution of England governor Andrew Bailey meet prime financial institution bosses, who worry she is planning a tax raid on the sector within the Price range.
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Outcomes: John Lewis and Adobe report.
Know of a European firm that has made a intelligent shift in technique or enterprise mannequin? Nominate them for the FT Reinvention Champions 2024 — make sure that to submit your entries by tomorrow.
5 extra prime tales
1. Donald Trump’s marketing campaign is reeling after his poor efficiency within the debate in opposition to Kamala Harris yesterday. Exasperated allies thought the previous president was outplayed by the vice-president and appeared unprepared, with Republican strategists and donors calling the face-off a “missed opportunity”.
FT specialists will dissect the controversy and its affect on the White Home race in an unique webinar at this time. Be part of us at 5pm BST.
2. Unique: Spain blocked a €619mn Hungarian takeover of Madrid-based trainmaker Talgo on the grounds that Viktor Orbán’s Russia-friendly authorities shouldn’t purchase know-how that might be helpful to Ukraine, in accordance with folks aware of the matter. Learn the total story.
3. Unique: The US Navy Seal unit that killed Osama bin Laden has been coaching for missions to assist Taiwan whether it is invaded by China, in accordance with folks aware of the preparations. Seal Crew 6, tasked with a number of the navy’s most delicate and tough missions, has been planning and coaching for greater than a 12 months.
4. Unique: 7-Eleven’s proprietor has tapped Nomura to advise on a possible takeover battle with Alimentation Couche-Tard, in accordance with three folks with information of the state of affairs. The Canadian dad or mum of rival chain Circle Okay mentioned it remained “highly focused” on the takeover, regardless of Seven & i’s rejection of its preliminary $39bn bid. Extra particulars right here.
5. OpenAI is aiming to boost at the least $5bn from buyers together with Apple, Nvidia, Microsoft and Thrive Capital. The San Francisco-based group is looking for extra funding to fund its bold plans to develop AI fashions able to outperforming human intelligence, in a deal that might practically double the start-up’s valuation to $150bn.
The Huge Learn
Amid political and financial pressures, enterprise capital finance has dried up in China, prompting a dramatic fall in new firm formation. Founders and buyers harbour few hopes of a return to the glory years earlier than the Covid-19 pandemic, when the likes of Alibaba and Tencent took benefit of fast financial progress and the rise of cell web to turn out to be globally vital tech firms. One Chinese language government mentioned: “The whole industry has just died before our eyes.”
We’re additionally studying . . .
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Gary Stevenson: For a lot of followers, his self-proclaimed success as a dealer is what makes him such a compelling critic of inequality. His former Citigroup colleagues have a special story.
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UniCredit: The Italian lender’s announcement that it had constructed a 9 per cent stake in rival Commerzbank has stoked takeover rumours and caught the German institution without warning.
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Tata’s UK plant: Each the federal government and the Indian group have hailed the latest £1.25bn deal, however the way forward for British steelmaking stays in query.
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US Metal deal: Nippon Metal’s doomed bid throughout the election season presents classes on the limits of American friendship, writes Leo Lewis.
Chart of the day
The UK Treasury has refused to offer key particulars of the £22bn fiscal “black hole” that chancellor Rachel Reeves claims to have found, fuelling doubts in regards to the authorities’s transparency. A freedom of knowledge request by the Monetary Instances for an actual breakdown was declined, with officers insisting they want extra time to make sure the figures are correct.
Take a break from the information
The boys’s grooming sector is booming. In recent times, devoted manufacturers together with Harry Types’ Pleasing, Dwayne Johnson’s Papatui and Jake Paul’s W have entered the market. Do males actually need so many specialised grooming merchandise? Teo van den Broeke investigates.
Further contributions from Benjamin Wilhelm and Gordon Smith
