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Good morning. We begin today with a scoop that China will push the Brics bloc of emerging markets to become a full-scale rival to the G7 this week, as leaders from across the developing world gather to debate the forum’s biggest expansion in more than a decade.
South Africa’s President Cyril Ramaphosa has invited more than 60 heads of state and government to a summit in Johannesburg from Wednesday when several countries could be invited to join the bloc of Brazil, Russia, India, China and South Africa, said several officials familiar with talks.
But in the run-up to the summit New Delhi has clashed with Beijing over the expansion. Tensions are mounting over whether the Brics should be a non-aligned club for the economic interests of developing countries, or a political force that openly challenges the west, said people briefed on India and China’s positions. South African officials said 23 countries are interested in joining.
“If we expand Brics to account for a similar portion of world GDP as the G7, then our collective voice in the world will grow stronger,” said one Chinese official, who declined to be identified. Read the full story.
More China news: China has launched military exercises around Taiwan, lashing out against the country’s vice-president and election frontrunner Lai Ching-te for visiting the US this week.
Here’s what else I’m keeping tabs on today:
Results: Goldwind Science & Technology, Lufax Holding and SJM Holdings report.
Military drills: The US and South Korea launch military exercises to improve their ability to address North Korea’s nuclear and missile threats. The drills begin days after the leaders of Japan and South Korea signed on to a trilateral pact with the US that will deepen military and intelligence co-operation between the three allies, amid heightened concerns about China and North Korea.
Five more top stories
1. China is expected to make the biggest cuts this year to two of its core lending rates as pressure mounts on policymakers to counter a host of economic challenges since lifting pandemic restrictions at the start of the year. The People’s Bank of China is set to announce reductions to both one-year and five-year loan prime rates, which affect borrowing costs for businesses and households, at a monthly meeting on Monday. Here’s more on the anticipated cuts.
Related: Yang Huiyan, chair and majority shareholder of Country Garden, China’s biggest property developer, is trying to stave off its collapse amid a real estate liquidity crisis.
2. Russia’s first post-Soviet Moon mission has ended in failure after its unmanned spacecraft Luna-25 spun out of control and crashed on to the Moon’s surface. The setback for Russia’s Roscosmos space agency underscores the decline of Moscow’s space programme since its peak during the cold war. Here’s how the Luna-25 crash could affect Russia’s space ambitions.
3. The Netherlands and Denmark have confirmed plans to provide Kyiv with more than 40 multipurpose F-16 fighter jets. But the first transfers of the American-made jets are likely to involve a lengthy pilot training process, meaning they will not arrive in time to help Ukraine during a tough summer counteroffensive.
4. Germany’s deputy chancellor has set out proposals to increase scrutiny of Chinese investments as Europe’s largest economy grapples with increased geopolitical risks surrounding its biggest trading partner. The measures put forward would toughen restrictions on foreign direct investment in Germany in critical sectors such as semiconductors and artificial intelligence. Read the full story.
5. India is to roll out ways of making voice-based and offline digital payments to expand the country’s fast-growing digital infrastructure and close a yawning divide between rural and urban areas. But the planned expansion of the Universal Payments Interface, a digital payments system, faces considerable headwinds. Read more on India’s digital divide.
The Big Read
The rise and fall of Riad Salameh, Lebanon’s former central bank governor, mirrors that of his country, one blighted by decades of hubris, deceit and corruption, now mired in what the World Bank has called one of the world’s worst economic depressions. The FT’s Raya Jalabi provides a comprehensive view of how Salameh allegedly abused the powers of his office for personal gain, demonstrating a pattern of embroiling his family in his financial affairs.
We’re also reading . ..
‘Shrinkflation’: Japanese food companies have become absolute masters in the dark arts of “shrinkflation” — reducing the quantity of product while maintaining familiar sizes of packaging.
Threads vs X: Many or most users of X (formerly Twitter) may be dissatisfied but until they all decide to leave at once, they will keep coming back.
World Cup champions: Spain’s women’s football team lifted the World Cup trophy for the first time after beating England 1-0 in Sydney.
Image of the day
Thousands of people are scrambling to evacuate the northern Canadian town of Yellowknife as flames from another blaze in the country’s record-breaking wildfire season bear down on people’s homes. The FT’s Aime Williams reports on North America’s summer of extreme weather.
Take a break from the news
It’s been a big summer for cinema. This FT Magazine special looks at the global cinema industry through the lenses of nine photographers — it’s a celebration of the art, craft and big personalities of moviemaking.
