FirstFT: Asian shares climb after Wall Road’s greatest day since 2022

Good morning. As we speak, we convey you particulars on Disney’s multibillion-dollar spending plans in Europe and a more in-depth take a look at Microsoft’s AI technique — past OpenAI.

However first, some upbeat information to shut off a turbulent week in markets. Japanese shares opened strongly this morning, taking their momentum from the in a single day surge on Wall Road, which had its greatest day since 2022.

The broad Topix index rose about 1.5 per cent within the first hour of buying and selling in the present day, matched by related positive aspects throughout Asia. The yen, whose speedy surge performed a central function in Monday’s crash in Tokyo shares, traded comparatively calmly at about Y147.2 towards the greenback.

Yesterday, US equities posted their strongest day by day positive aspects since November 2022 as a drop in US unemployment claims helped to assuage fears over an imminent financial slowdown. Considerations across the US financial system stay the overwhelming driver of sentiment, merchants mentioned. Right here’s what analysts are saying.

• Discount buys: Large buyers similar to BlackRock and UBS are amongst these attempting to find low cost shares after Monday’s sell-off, specializing in megacap tech teams.

• US politics: Current market volatility is a warning to Kamala Harris that her marketing campaign can’t depend on a rebounding financial system forward of November’s election.

Robert Armstrong of Unhedged and different FT specialists from London to Tokyo will break down the current buying and selling turmoil in a subscriber-only webinar subsequent Wednesday. Don’t miss it. And right here’s what I’m preserving tabs on in the present day and over the weekend:

• Financial knowledge: Germany publishes its shopper worth index in the present day, as will Russia, which additionally studies its second-quarter GDP.

• Outcomes: Bridgestone, Hargreaves Lansdown and RTL report.

• Paris Olympics: The Video games will maintain medal ceremonies for athletes overwhelmed by opponents later revealed to have been doping, forward of the closing ceremony on Sunday.

How effectively did you retain up with the information this week? Take our quiz.

5 extra prime tales

1. Disney plans to spend $5bn making blockbuster motion pictures and TV reveals within the UK and continental Europe over the subsequent 5 years, in accordance with its European boss. Disney’s regional president mentioned the success of Deadpool & Wolverine confirmed there was “a lot of life left” in superhero franchises.

• Extra on media: Two US tv giants, Paramount and Warner Bros Discovery, have admitted that their cable channels are value $15bn much less than they thought.

2. Unique: Perplexity AI has elevated its month-to-month revenues and utilization seven-fold because the begin of the yr, after closing a brand new $250mn spherical of funding. The bogus intelligence-powered search engine answered roughly 250mn questions within the final month, in contrast with 500mn queries for the entire of 2023. Madhumita Murgia and Cristina Criddle have extra particulars.

3. Mozambique’s former finance minister, Manuel Chang, has been discovered responsible of accepting $7mn in bribes as a part of what turned referred to as the “tuna bonds” scandal, and underwriting a sequence of bogus investments that in the end imploded and wrecked the nation’s financial system. Extra particulars from yesterday’s trial in New York.

4. Ukraine has captured roughly 350 sq km in Russia’s Kursk area, with its forces combating to broaden and solidify their presence yesterday. Russia’s defence ministry mentioned its troops fought off the biggest Ukrainian incursion because the begin of Moscow’s full-scale invasion in 2022. Listed here are the newest updates on the struggle.

5. Barclays has develop into the primary UK financial institution to inform employees it is going to scrap the bonus cap imposed by the EU, following the UK’s post-Brexit choice to take away the boundaries final yr. In keeping with an inside memo seen by the FT, “material risk takers” amongst its senior employees might be eligible for awards of as much as 10 instances their mounted pay.

The Large Learn

Microsoft chief government Satya Nadella’s guess on OpenAI in July 2019, lengthy earlier than its flagship ChatGPT turned a family identify, has since created one of many business’s most profitable partnerships. Final yr, a quashed coup towards co-founder Sam Altman solely served to remind buyers of how central the start-up had develop into to the tech big’s synthetic intelligence ambitions. However within the eight months because the disaster, Nadella has been working to execute an AI technique unbiased of the start-up. Right here’s how Microsoft is spreading its bets past OpenAI.

We’re additionally studying . . . 

• Chinese language financial system: At their annual summer time retreat in Beidaihe, China’s leaders are fretting over a vexing drawback: find out how to improve family spending.

• Flipping burgers: Analysis on entry-level McDonald’s staff is shedding new gentle on questions surrounding low-wage pay and inequality, writes Soumaya Keynes.

• Bear assaults: Encounters in Romania and Italy have highlighted difficulties in balancing public security with the preservation of wildlife.

Chart of the day

Regardless of rising concern over local weather change, Inexperienced events have misplaced 1 / 4 of their seats within the European parliament, dropping from fourth to sixth place after June’s elections. The motion wants to choose about who they wish to signify and what they’re ready to do to curtail carbon emissions, writes John Burn-Murdoch, or danger remaining on the sidelines.

Take a break from the information

Simon Kuper explains why Olympic medals are often a sign {that a} nation is doing vital issues proper, far past sport.

Extra contributions from Benjamin Wilhelm and Harvey Nriapia