Good morning and welcome back to FirstFT Asia. In today’s newsletter:
-
Where US-China trade talks stand
-
Blackstone executive killed in New York shooting
-
China’s manufacturing addiction
-
Where to eat in Singapore
We start with US-China relations, after two days of talks in Stockholm where the two countries discussed a possible extension to the ceasefire in their trade war. Here’s the latest news.
No truce extension yet: US Treasury secretary Bessent denied a report from earlier in the day that the two sides had agreed to extend the tariff truce by 90 days, saying it was only one option for President Donald Trump. Bessent said the two sides held “very constructive” talks. Meanwhile Trump told reporters as he flew back from Scotland on Air Force One that the Treasury secretary had told him that the meeting with the Chinese was “very good” and that the outcome would be “probably pretty good”.
A Trump-Xi meeting? While Bessent said the US and Chinese teams did not discuss a possible summit between Trump and President Xi Jinping, Trump told reporters yesterday that he thought the two leaders would meet before the end of the year. “He wants to meet and I look forward to the meeting too,” he said. The FT reported this week that the Trump administration took several actions that were partly designed to improve the chances of the two leaders holding a summit.
Read more about the latest round of US-China negotiations.
-
‘Pervasive sense of fear’: China is increasing its use of “exit bans”, ensnaring Chinese nationals and foreigners alike and deepening concerns about business travel to the country.
-
US-China AI race: China used its first big AI expo since DeepSeek’s breakthrough to present an alternative to Trump’s “America First” vision and showcase the country’s vast manufacturing capabilities.
-
Beijing floods: At least 30 people have been killed as heavy storms lashed the Chinese capital, while authorities relocated tens of thousands of people from the region.
-
US-North Korea relations: Pyongyang said relations between its leader Kim Jong Un and Trump are “not bad”.
Here’s what else we’re keeping tabs on today:
-
Economic data: Australia reports CPI inflation data, Japan releases trade statistics and Singapore publishes job figures.
-
Monetary policy: The Monetary Authority of Singapore releases its monetary policy statement.
-
US markets: Investors are bracing themselves for a “pivotal” three days in American markets, beginning today with the release of second-quarter US GDP, followed hours later by a Federal Reserve decision.
-
Results: Nissan Motor, HSBC, Japan Exchange Group, Tata Steel, Microsoft, Meta and Rio Tinto report earnings.
Five more top stories
1. India claimed to have killed three Pakistani nationals who it says were responsible for a deadly attack in Kashmir in April that brought New Delhi and Islamabad to the brink of war. All three were members of the Pakistan-based terror group Lashkar-e-Taiba, said Amit Shah, India’s powerful home minister, without providing further evidence. Read the full story.
2. A gunman late on Monday killed four people before taking his own life at a Midtown Manhattan office tower that houses the National Football League, which appears to have been his target. The building is also home to Blackstone, and one of the investment group’s highest-ranking female executives, Wesley LePatner, was fatally shot in the attack, which has sparked new alarm across New York’s financial sector.
3. Novo Nordisk’s shares plunged more than a fifth yesterday, after it slashed sales and profit forecasts for the year amid competition from US copycat weight-loss drugs. The share slide wiped more than €60bn off the value of the Danish manufacturer of Ozempic and Wegovy.
4. The UK will recognise a Palestinian state in September unless Israel takes immediate steps to end the crisis in Gaza, the British government has said. Among those steps, the UK government said Israel had to allow the UN “to restart without delay the supply of humanitarian support to the people of Gaza to end starvation”.
5. India’s largest conglomerate Tata Sons is expected to fend off a regulator’s order for an initial public offering that would have introduced greater transparency at the closely held group. The Reserve Bank of India had wanted Tata Sons to list by the end of September in accordance with central bank rules that classify it as a major shadow lender. Here’s what could happen next.
The Big Read
Desperate to meet growth targets, local officials in China are driving investment into favoured industries such as artificial intelligence, robots, batteries and solar panels. The resulting glut has added to overcapacity, eroded profit margins and deepened the country’s dependence on manufacturing as a growth engine. Can China break this addiction?
We’re also reading . . .
-
Thai-Cambodia clash: The conflict was not simply a bilateral failure — China and Asean need to take responsibility for defusing tensions, writes Sophal Ear.
-
De Beers: Is Botswana serious about taking over the diamond producer, or is it bluster from a government that swept to power on populist promises?
-
US-China AI rivalry: When one side gains an unexpected technological capability, it can escalate the risk of conflict, writes former White House China affairs adviser Julian Gewirtz.
Chart of the day
The IMF has upgraded its global growth forecast amid signs that Trump’s trade war will do less damage to the world economy than initially feared.
Take a break from the news . . .
Dave Pynt, the chef-owner of Michelin-starred Burnt Ends, recommends his favourite eateries in Singapore, from upscale restaurants to night markets.
Read the full article here