FirstFT: Xi-Putin’s ties on show on the Kremlin

Good morning. Right now we begin with Chinese language president Xi Jinping’s assembly together with his Russian counterpart Vladimir Putin in Moscow, the place the 2 leaders promoted China’s peace plan to finish the struggle 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 yr, 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 essential ally, has mentioned 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, nevertheless, has prevented 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 yr.

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

• 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 now not so clear following the collapse of Silicon Valley Financial institution. Buyers shall be intently watching policymakers’ two-day assembly, which begins at this time.

Thanks in your suggestions on FirstFT’s redesign. Please ship us your ideas on at this time’s replace to [email protected].

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, have been down by 47 per cent on the shut of the US markets on Monday. Right here’s what else to know concerning the US financial institution chaos:

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

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

2. Credit score Suisse bondholders have 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, that is in opposition to the legislation,” mentioned a fund supervisor at Aquila Asset Administration who invests in further 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 court docket listening to yesterday, the corporate mentioned that it would launch a time period 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: Large Pharma has requested for a slice of the US’s $280bn chip trade assist bundle as a part of an effort to construct up the nation’s biotechnology trade and stave off Chinese language competitors. Learn extra concerning the tax breaks and subsidies that drugmakers are requesting.

The Large Learn

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

We’re additionally studying . . . 

• Xi-Putin: Behind the discuss of peace, the substance of the Xi-Putin summit will push in the other way, writes Gideon Rachman. It can 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 compelled 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 response to a brand new UN report. Local weather change already happening will proceed throughout the lifespan of three generations born in 1950, 1970 and 2020 — as proven beneath. 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 — however that’s solely a part of their attraction, writes Jessica Salter.

Further contributions by Gordon Smith and Tee Zhuo