Joe Biden preparing to block Nippon Steel’s acquisition of US Steel

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The tales that matter on cash and politics within the race for the White Home

Good morning. Immediately we’re masking:

• India and Russia’s secret commerce channel

• How China-related safety issues have remodeled US financial coverage

• An interview with Sony’s CEO

However first, President Joe Biden will block Nippon Metal’s acquisition of US Metal after concluding that the $14.9bn transaction posed a nationwide safety threat that would not be mitigated by the US and Japanese teams.

A number of individuals accustomed to the matter mentioned the White Home would forestall the acquisition of the Pittsburgh-based group on nationwide safety grounds.

Biden’s determination, which is predicted within the coming days, comes as Kamala Harris, the Democratic presidential nominee, steps up her campaigning for blue-collar votes in Pennsylvania, a swing state that would resolve November’s US election.

Talking in Pennsylvania on Monday, Harris mentioned the long-lasting US steelmaker ought to stay “American owned and American operated”, mirroring the stance that Biden took after Nippon unveiled the deal final 12 months.

However many overseas coverage specialists — and a few administration officers in personal — have ridiculed the notion that Nippon’s proposed acquisition is a security risk. Japan is an important American ally within the Indo-Pacific and has been working very carefully with Washington on a spread of efforts to counter China.

Right here’s what else I’m holding tabs on at this time:

• Financial information: South Korea publishes revised second-quarter development figures and Singapore experiences July retail gross sales. Thailand, Taiwan and the Philippines report August inflation information.

• Financial coverage: Malaysia’s central financial institution pronounces its rate of interest determination.

• China-Africa summit: Leaders and officers from 50 African international locations are gathered in Beijing, the place Xi Jinping is predicted to induce them to absorb more Chinese goods in return for pledges of loans and funding. (Reuters)

5 extra high tales

1. Unique: Russia has been secretly buying delicate items in India and explored constructing services within the nation to safe elements for its struggle effort, based on Russian state correspondence seen by the FT. The leaked recordsdata define Moscow’s plan to make use of “important reserves” of rupees amassed from oil gross sales to India on securing essential electronics by means of channels hidden from western governments.

2. Funding banks are reducing their development forecasts for China, believing Beijing dangers falling short of its official target of about 5 per cent. China’s GDP goal has attracted shut scrutiny within the wake of the pandemic amid weak investor confidence and a struggling property sector.

3. Washington’s new envoy to Taiwan has praised Taipei’s defence reforms, in an announcement of reassurance because the prospect of one other Donald Trump presidency raises issues over the US’s dedication to its allies and companions. Raymond Greene additionally mentioned Washington would “not rule out” joint weapons development with Taiwan.

4. Volvo Vehicles has deserted its bold goal to promote solely electrical automobiles by 2030 amid a world slowdown in development for battery-powered autos. The Geely-owned Swedish group blamed changing market conditions and consumer worries over the shortage of charging infrastructure for its revised goal.

5. Prime Minister Justin Trudeau’s essential parliamentary alliance companion has torn up a deal to help his Liberal authorities, throwing Canada into new political uncertainty and raising the chance of a snap election.

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The Massive Learn

The rising intersection of financial coverage and nationwide safety within the US has many roots, but the biggest factor has been China. Fears about espionage and dual-use applied sciences have fused with financial nationalism to create an American mindset unrecognisable from the nation’s post-cold struggle free market perspective — with dramatic implications for the way forward for the worldwide financial system. 

We’re additionally studying . . . 

Chart of the day

Goldman Sachs has slashed its 2025 copper value forecast by a 3rd, clouding the revenue outlook for main miners of the steel. The Wall Road financial institution warned this week that an anticipated rally wouldn’t materialise because the Chinese property rout depresses demand for commodities.

Take a break from the information

Scientists are finding out — and recreating — molecules that now not exist, in a area referred to as “molecular de-extinction”, writes Anjana Ahuja. No, this isn’t about bringing again the dodo or the woolly mammoth, however somewhat making an attempt to see whether or not their genomes conceal long-lost molecules that supply options to our fashionable issues.

Further contributions from Tee Zhuo and Harvey Nriapia