FirstFT: Iran will solely conform to talks if Israel stops bombing, diplomats say

Good morning and welcome to FirstFT Asia. In at the moment’s e-newsletter:

• Tehran’s message for Israel in negotiations

• Trump’s opening remarks at G7 summit

• Millennium in talks to promote minority stake

We begin within the Center East, with the newest updates on the battle between Israel and Iran.

The newest: Israeli missiles hit the headquarters of Iran’s state tv throughout a reside broadcast on Monday. Footage reveals the programme’s host leaving the studio because it full of smoke. “Four bombs” struck the constructing and efforts are beneath technique to extinguish the fireplace, in response to a neighborhood TV reporter. Earlier within the day, the IDF had known as on civilians to depart the world the place the TV studio is positioned.

What may come subsequent: Tehran’s message in discussions to finish the struggle and resume nuclear programme talks is “very clear” — that it might not negotiate whereas beneath assault. “If the Israelis stop, they will stop, that’s the messaging we are getting,” a diplomat stated. US President Donald Trump has stated he would favor to achieve an settlement to resolve the nuclear stand-off, however has additionally threatened army motion if diplomacy failed.

Financial shock: The Federal Reserve and Financial institution of England will meet within the coming days as Israel’s assault on Iran provides to a collection of geopolitical shocks. The tensions will check their urge for food for charge cuts, however central bankers are cautious of showing too tolerant of overshooting their inflation targets, economists say.

We’ll convey you real-time updates on the struggle and its impression at our reside weblog. Right here’s extra on the scenario:

• Iran’s existential check: Forty years after its struggle with Iraq, the stakes for the Islamic republic are existential in Ayatollah Ali Khamenei’s “most significant moment”.

• Opinion: If Iran is shedding a standard battle, there’s a hazard that it’ll resort to unconventional technique of retaliation, writes Gideon Rachman.

Right here’s what else I’m maintaining tabs on at the moment:

• G7 summit: Greater than a dozen leaders will conclude talks in Canada beneath the shadow of a quickly escalating Israel-Iran battle.

• Financial knowledge: Japan makes an rate of interest choice because the nation’s inflation climbed final month to its quickest charge in additional than two years.

• IEA: The Worldwide Vitality Company will difficulty its oil market report.

5 extra prime tales

1. Trump stated it was a “big mistake” to exclude Russia and “not a bad idea” to incorporate China in G7 summits. The US president’s opening remarks in Canada have been delivered subsequent to Mark Carney, marking a clumsy begin to this yr’s summit. Whereas China and Russia are a part of the G20, a wider group that features the world’s largest economies, Trump has lengthy stated he wish to see the G7 return to a G8 format.

2. Unique: One of many world’s largest hedge funds is in talks to promote a minority stake to exterior buyers at a $14bn valuation. Millennium Administration, which has greater than $75bn in property, could have a proper valuation for the primary time, which might safe it one of many prime valuations of any hedge fund supervisor, in response to folks acquainted with the scenario.

3. China’s industrial output progress slowed in Could however client spending picked up, in response to official knowledge, highlighting uncertainty for the world’s second-largest financial system because it navigates a commerce struggle with the US. The onset of a full-blown commerce struggle with the US has added to pressures on China’s financial system.

4. Unique: JPMorgan’s European chief plans to relocate from London to New York, whereas maintaining his function working the financial institution’s Europe, Center East and Africa enterprise. The transfer by Filippo Gori, who can be the lender’s co-head of world banking, is the newest in a string of examples of senior bankers overseeing UK-based operations from the US.

5. The person accused of assassinating a US lawmaker and her husband has been charged with homicide. The suspect allegedly travelled to the houses of a minimum of 4 public officers on Saturday, in a case federal officers are describing because the “stuff of nightmares”. 

At this time’s massive learn

The itemizing of Brazil’s JBS on the New York Inventory Change on Friday caps probably the most dramatic enterprise comebacks in current historical past. Nearly eight years in the past, Wesley and Joesley Batista have been in jail, engulfed in a corruption scandal that almost toppled a president and stained the identify of their world meat empire. The FT spoke with a few dozen individuals who have labored for, or know, the billionaire beef barons. But questions stay in regards to the divisive figures.

We’re additionally studying . . . 

Chart of the day 

Abu Dhabi’s nationwide oil firm is providing to take over Santos, main a consortium to bid for considered one of Australia’s largest power corporations. Santos stated its board would suggest the supply, topic to phrases being agreed. If the deal closes, the $22bn deal can be the most important takeover of an Australian firm, based mostly on the money paid and whole deal measurement together with debt.

Take a break from the information

Are you uninterested in seeing the solar peak via your convention room blinds? Caroline Binham writes that we are able to choose up the tempo of conferences by taking them outdoors. Other than a greater surroundings, leaders just like the late Steve Jobs have been staunch advocates of the strolling assembly. Is it the time to strive transferring from al desko to alfresco?