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Good morning. Right this moment we’re overlaying:
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Beijing’s retaliation in opposition to Brussels’ EV tariffs
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Vietnam’s incentives for overseas buyers
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Mushroom’s sculptural, surreal and barely creepy magnificence
However we begin with a scoop: PwC China has instructed purchasers it expects Chinese language authorities to hit it with a six-month enterprise ban that may begin as early as September, as a part of punishment over its audit of collapsed property developer Evergrande.
The motion in opposition to PwC comes after China’s securities regulator in March mentioned Evergrande had inflated its mainland revenues by virtually $80bn within the two years earlier than the developer defaulted on its money owed in 2021, regardless of PwC’s China unit giving the accounts a clear invoice of well being.
The enterprise ban, which may include a big high-quality, can be the hardest ever motion by Chinese language regulators in opposition to a Massive 4 agency as Beijing steps up scrutiny over the position performed by auditors in monetary scandals.
Right here’s how the ban and high-quality would disrupt operations on the agency.
Thanks for studying FirstFT. Do you’ve gotten any questions on PwC China or Beijing’s crisis-hit property sector? E-mail us at firstft@ft.com or hit “reply” and keep in mind to incorporate your identify and the place you’re writing from. We’ll reply as many as attainable in a particular weekend version of the e-newsletter.
Right here’s what else I’m preserving tabs on in the present day:
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Rate of interest bulletins: South Korea and Turkey are anticipated to carry rates of interest regular once they meet in the present day.
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Jackson Gap Financial Symposium: US policymakers will collect for his or her annual assembly in Wyoming amid rising considerations concerning the well being of the world’s largest financial system.
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Outcomes: Company earnings are anticipated from Australia’s Sonic Healthcare, Taiwan’s Fubon Monetary Holding Co., and China’s Ping An Insurance coverage Group, amongst others.
5 extra high tales
1. China has launched an anti-dumping investigation into imported European dairy merchandise within the newest escalation of its commerce dispute with the EU. The transfer is Beijing’s strongest retaliation but in opposition to Brussels’ tariffs on Chinese language electrical car imports.
2. 5 our bodies have been discovered by divers looking out the wreckage of Mike Lynch’s superyacht Bayesian, which sank off the coast of Sicily. 4 our bodies have been pulled from the sunken yacht on Wednesday, a fifth physique was discovered however not but eliminated whereas a sixth particular person stays lacking. After two days of struggling to discover a method via particles, divers gained entry to Bayesian’s cabins with an underwater drone.
3. Sephora is chopping again its workforce in China as certainly one of LVMH’s largest income mills struggles to realize traction within the robust mainland magnificence market. The cuts signify lower than 3 per cent of Sephora’s China-based workforce, however they level to strain within the nation’s extremely aggressive and price-sensitive magnificence market.
4. Walmart bought its total stake in Chinese language ecommerce big JD.com for $3.6bn, because the world’s largest retailer focuses on increasing its personal manufacturers within the nation. The US retailer disclosed in a submitting to the US Securities and Change Fee that it had fully disposed of its practically 10 per cent holding within the ecommerce firm. Ryan McMorrow has the complete story right here.
5. Federal Reserve officers final month signalled their readiness to begin chopping rates of interest at their September assembly within the face of slowing job development and easing inflation. Learn extra from the minutes of their July assembly.
The Massive Learn
China has a big footprint in Africa due to its $1tn Belt and Street Initiative, which presents to finance and construct infrastructure in largely poorer international locations and provides it a bonus within the race for management of important minerals. However a $10bn US-backed railway illustrates Washington’s want to compete with Beijing in Africa.
We’re additionally studying . . .
Chart of the day
Western buyers have piled again into gold as they place for US rate of interest cuts this yr, serving to to drive costs to document highs this week. Costs reached $2,531 per troy ounce in buying and selling yesterday, taking gold’s positive aspects for the yr to greater than a fifth, boosted by purchases by institutional buyers and bullish hedge fund bets.
Take a break from the information
Have you ever ever thought out rising mushrooms for his or her aesthetic enchantment? These pink oyster mushrooms may make you take into account it.
Further contributions from Tee Zhuo and Melody Abike Adebisi