Joe Biden getting ready to dam Nippon Metal’s acquisition of US Metal

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

Good morning. Right this moment 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 danger that would not be mitigated by the US and Japanese teams.

A number of folks acquainted with the matter mentioned the White Home would stop 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 determine November’s US election.

Talking in Pennsylvania on Monday, Harris mentioned the enduring 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 safety danger. Japan is a very powerful American ally within the Indo-Pacific and has been working very carefully with Washington on a variety of efforts to counter China.

Right here’s what else I’m retaining tabs on immediately:

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

• Financial coverage: Malaysia’s central financial institution proclaims 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 take in extra Chinese language items in return for pledges of loans and funding. (Reuters)

5 extra prime tales

1. Unique: Russia has been secretly buying delicate items in India and explored constructing services within the nation to safe parts for its battle effort, in keeping with Russian state correspondence seen by the FT. The leaked information define Moscow’s plan to make use of “significant reserves” of rupees amassed from oil gross sales to India on securing crucial electronics by way of channels hidden from western governments.

2. Funding banks are chopping their development forecasts for China, believing Beijing dangers falling in need of its official goal 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 growth with Taiwan.

4. Volvo Vehicles has deserted its formidable goal to promote solely electrical vehicles by 2030 amid a world slowdown in development for battery-powered automobiles. The Geely-owned Swedish group blamed altering market circumstances and shopper worries over the dearth of charging infrastructure for its revised goal.

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

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The Large Learn

The rising intersection of financial coverage and nationwide safety within the US has many roots, however the largest issue 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 battle 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 metallic. The Wall Avenue financial institution warned this week that an anticipated rally wouldn’t materialise because the Chinese language property rout depresses demand for commodities.

Take a break from the information

Scientists are learning — and recreating — molecules that now not exist, in a area often known as “molecular de-extinction”, writes Anjana Ahuja. No, this isn’t about bringing again the dodo or the woolly mammoth, however somewhat attempting to see whether or not their genomes disguise long-lost molecules that supply options to our trendy issues.

Extra contributions from Tee Zhuo and Harvey Nriapia