Tensions over Taiwan on display ahead of G20

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Good night.

Russia’s aggression in Ukraine and tensions over Taiwan had been the important thing points as world leaders gathered for the G20 summit in Bali at present, an occasion dubbed the “first global summit of the second cold war”.

Forward of tomorrow’s formal assembly, US president Joe Biden — buoyed by beneficial ends in the US midterms — met his Chinese language counterpart Xi Jinping for 3 and a half hours of their first face-to-face assembly as leaders.

After optimistic phrases about “maintaining strains of communication open” and “managing our variations” in a post-meeting press convention, the White Home stated Biden had criticised China’s “coercive and increasingly aggressive actions” towards Taiwan.

Home Speaker Nancy Pelosi’s visit to the island this summer time had provoked a robust response from Beijing, main it to launch navy workouts and droop routine communications on points similar to local weather change.

The primary and dominant merchandise on the formal G20 agenda tomorrow nonetheless stays Russia’s battle in Ukraine, adopted by a session on world well being, with a 3rd on digital points.

Not one of the G20 (comprising 19 states and the EU) sided with Russia to oppose a UN decision condemning Moscow’s tried annexation of elements of Ukraine, however three members — China, India and South Africa — abstained. China says it’s impartial on the battle, however has backed Moscow’s declare that the US-led enlargement of Nato is what triggered the invasion. Conspicuous by his absence is Russian president Vladimir Putin, who has despatched overseas minister Sergei Lavrov in his place.

Individually, CIA chief Invoice Burns at present warned Russia in opposition to using nuclear weapons within the first identified in-person assembly between senior officers of the 2 international locations for the reason that invasion, whereas Nato stated it will not strain Ukraine into peace talks, promising continued assist for the nation.

The G20 assembly additionally presents a uncommon second on the worldwide stage for Joko Widodo, Indonesia’s president and summit host. In an interview with the FT final week, the pinnacle of the world’s fourth most populous nation expressed frustration that the G20 was being seen as a political discussion board, reasonably than the financial and growth assembly initially supposed. Judging by at present’s headlines, he’s prone to stay disenchanted.

Have to know: UK and Europe economic system

The UK’s fiscal watchdog estimates that authorities borrowing will likely be a a lot larger than anticipated £100bn as chancellor Jeremy Hunt prepares for his Autumn Assertion, prone to characteristic information of higher taxes for all and an overhaul of R&D tax credits. Chief economics commentator Martin Wolf says the Tories have to ditch their outmoded ideology and raise taxes. Listed below are five things to look out for on Thursday.

Eurozone industrial manufacturing rose by a more than expected 0.9 per cent in September as provide chain issues eased. One analyst stated corporations is perhaps bringing ahead manufacturing to keep away from vitality provide disruptions this winter.

The German authorities nationalised Gazprom’s German subsidiary in a transfer it stated was designed to safeguard the nation’s gasoline provide. The corporate’s “over-indebtedness” had left it at risk of insolvency, the economic system ministry stated.

Russian assaults have broken a lot of Ukraine’s vitality infrastructure, and exacerbated an already dire monetary scenario for Kyiv, which says it wants $55bn in worldwide help for subsequent yr. Companies are clinging on in the darkness. A Ukraine minister warned the state might seize more corporate assets to assist the battle effort.

Our Huge Learn discusses the authorized fallout from a mortgage time bomb that threatens to push Polish banks under and do severe harm to the economic system.

Have to know: World economic system

One other Huge Learn, printed earlier at present, appears to be like at how North Korea has turn into a cyber crime superpower, significantly in cryptocurrency theft, which has turn into one of many regime’s essential sources of income.

The world housing market is about for the broadest slowdown since the financial crisis as rising mortgage funds and a deepening value of dwelling disaster put paid to the pandemic-induced growth.

China’s Singles Day, the world’s greatest retail occasion, did not lift the gloom across the nation’s economic system. Shoppers and retailers stay nervous about Xi Jinping’s zero-Covid coverage in addition to a crackdown on extra.

Saudi Arabia is hoping a 50 per cent improve in phosphate fertiliser manufacturing might help it turn into much less depending on oil revenues. The dominion was emboldened on the COP27 convention final week as demand for oil from the west “exposed hypocrisies” on using fossil fuels.

Have to know: enterprise

The US Securities and Alternate Fee has began to demand extra particulars from corporations on the impact of inflation on their enterprise. Transport group FedEx and retailer Costco are amongst these with a letter from the SEC.

Because the “free cash” period involves an finish, dealmaking is getting harder, with total world exercise to this point this yr down a 3rd on final yr. For corporations with strong steadiness sheets, nonetheless, the present atmosphere makes it the perfect time to strike.

Excessive vitality costs are main UK hospitality companies to cut working hours. The approaching World Cup, usually a growth for pubs displaying stay video games, is unlikely to offer much of a saviour this time round.

The top of the world’s second-largest gold miner stated the sector outlook was unsure however performed down fears of a price crash.

Unexpectedly downbeat monetary forecasts from the likes of Qualcomm, AMD and Intel have highlighted how the US chipmaking growth has turned from boom to bust. China’s semiconductor business in the meantime remains to be struggling to adapt to new US export controls that restrict its potential to acquire or make superior chips.

Synthetic intelligence is giving insurers “godlike” powers to make predictions on every part from pure disasters to mind illness, says the pinnacle of the corporate introducing Japan’s firsts dementia prevention insurance coverage.

The FT invited readers to appoint European corporations utilizing new expertise to fulfill the enterprise challenges of 2022, from the Ukraine battle to the local weather disaster. Learn our Tech Champions sequence.

The World of Work

“Our class tries to fulfill on-line, however we’ve got to shelter underground throughout rocket assaults as much as 3 times a day and we frequently have energy cuts.” Learning for a enterprise diploma is tough sufficient, however how about during a war? We discuss to Ukrainian managers enrolled in an govt MBA at Kyiv’s Worldwide Administration Institute.

For long-serving workers irritated with calls for from youthful colleagues for a higher working life, columnist Emma Jacobs has some recommendation: don’t be the office curmudgeon. One individual undoubtedly not sympathetic with WFH is new Twitter boss Elon Musk, who in his first electronic mail to workers since taking up, has banned remote working.

Because the UK financial outlook darkens and we enter the period of polycrisis, now’s the time for boards to indicate solidarity with their employees by restraining bosses’ pay, says columnist Helen Thomas.

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Some excellent news

A brand new examine that reveals that rats transfer instinctively in time to music (not less than to a Mozart piano sonata), one thing beforehand solely identified in man, might make clear how music and dance grew to become such an necessary a part of the human situation.