FirstFT: Xi-Putin’s ties on display at the Kremlin

Good morning. Immediately we begin with Chinese language president Xi Jinping’s assembly along with his Russian counterpart Vladimir Putin in Moscow, the place the 2 leaders promoted China’s peace plan to end the war in Ukraine.

Putin welcomed the 12-point plan, which he praised for following “ideas of equity”. Xi returned the nice and cozy welcome, endorsing Putin’s “sturdy management” — and each referred to as one another a “expensive buddy”.

Since Russia’s full-scale invasion of Ukraine final 12 months, China has supplied an financial lifeline to Russia that has eased the ache from western sanctions. Xi’s peace plan, in the meantime, largely repeats the speaking factors the Kremlin has used all through the struggle, with out condemning Putin’s invasion or calling on him to withdraw troops.

The US, which is Ukraine’s most necessary ally, has stated China’s peace plan quantities to “the ratification of Russian conquest” by calling for a ceasefire that may solidify Russian occupation of Ukrainian territory.

Kyiv, nonetheless, has averted criticising the plan forward of an anticipated name between Xi and Ukraine president Volodymyr Zelenskyy, which might mark the primary time they’ve spoken because the struggle started in February final 12 months.

Right here’s what else I’m protecting tabs on as we speak:

• German official visits Taiwan: Bettina Stark-Watzinger, federal minister of training and analysis, is because of arrive in Taipei as the primary German federal minister to go to Taiwan in 26 years.

• Nato annual report: Nato secretary-general Jens Stoltenberg presents the defence alliance’s report at its headquarters in Brussels.

• Federal Reserve assembly: The outlook for the Fed is not so clear following the collapse of Silicon Valley Financial institution. Buyers can be intently watching policymakers’ two-day assembly, which begins as we speak.

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5 extra prime tales

1. US financial institution chief executives are trying to find a brand new plan for First Republic after a $30bn lifeline didn’t cease a pointy sell-off within the lender’s shares. Shares of First Republic, which have fallen by virtually 90 per cent this month, had been down by 47 per cent at the close of the US markets on Monday. Right here’s what else to know concerning the US financial institution chaos:

• Federal regulators have extended the bid deadline for the failed Silicon Valley Financial institution.

• Shares of New York Group Financial institution jumped 30 per cent after considered one of its subsidiaries agreed to purchase most of Signature Financial institution, the failed crypto-focused lender.

2. Credit score Suisse bondholders had been in uproar yesterday and the European Central Financial institution raised considerations after the rescue deal by rival UBS worn out $17bn of the failed Swiss financial institution’s bonds. “In my eyes, this is against the law,” stated a fund supervisor at Aquila Asset Administration who invests in extra tier 1 (AT1) financial institution debt.

3. Chinese language property developer Evergrande has launched a brand new timeline for its restructuring course of, after repeatedly missed its personal self-imposed deadlines. At a Hong Kong courtroom listening to yesterday, the corporate stated that it would release a term sheet on Wednesday.

4. The IMF has backed a $3bn bailout for Sri Lanka to assist the nation restructure its money owed and relieve a “catastrophic” financial and social disaster. The deal on the bailout was lastly reached after resistance from China was overcome earlier this month.

5. Unique: Huge Pharma has requested for a slice of the US’s $280bn chip trade assist package deal as a part of an effort to construct up the nation’s biotechnology trade and stave off Chinese language competitors. Read more about the tax breaks and subsidies that drugmakers are requesting.

The Huge Learn

As the worldwide pandemic halted journey and shut borders in 2020, two of Asia’s greatest monetary centres noticed a chance. Hong Kong and Singapore noticed an opportunity to problem the prevailing offshore centres such because the Cayman Islands and shift the global centre of gravity for world’s the wealthiest families.

We’re additionally studying . . . 

• Xi-Putin: Behind the speak of peace, the substance of the Xi-Putin summit will push in the other way, writes Gideon Rachman. It should contain elevated Chinese language assist for Russia, because it wages a struggle of aggression.

• Wirecard scandal: Like his grandson Jan, the mastermind of the Wirecard fraud, Hans Marsalek was suspected by Austrian authorities of being a Russian spy.

• Credit score Suisse rescue: An unmissable play-by-play of how the Swiss Nationwide Financial institution, regulator Finma and minister of finance pressured UBS to avoid wasting Credit score Suisse.

Graphic of the day

The world is “extra doubtless than not” to overlook its goal to maintain world warming to 1.5C within the near-term, in keeping with a brand new UN report. Local weather change already going down will continue across the lifespan of three generations born in 1950, 1970 and 2020 — as proven under. Some areas have already reached the “limits” of what they may adapt to.

Take a break from the information

What’s behind the success of the “cleanfluencers”? They dispense housekeeping tricks to hundreds of thousands of social media followers — but that’s only part of their appeal, writes Jessica Salter.

Extra contributions by Gordon Smith and Tee Zhuo