FirstFT: India and Russia to spice up commerce regardless of Ukraine conflict

Good morning. Right this moment we’re protecting:

• Temasek’s warning on China

• China’s creaking energy grid

• India’s superpower potential

However we begin with Narendra Modi’s journey to Russia — the Indian prime minister and Vladimir Putin agreed to spice up commerce between their two international locations, defying western efforts to squeeze the Russian financial system over its invasion of Ukraine.

Throughout Modi’s go to to Moscow on Monday and Tuesday, he and Putin pledged to extend annual bilateral commerce to $100bn by 2030, up from $65bn at current, with India importing extra Russian oil and fertilisers and looking for to export extra agricultural and industrial merchandise.

Modi — who’s looking for to counter Russia’s more and more shut ties to India’s strategic rival China — hailed Russia as India’s “all-weather friend” throughout his go to.

India has not condemned Russia’s invasion of Ukraine or taken sides within the conflict, however has known as for an finish to hostilities whereas providing Moscow a essential lifeline from western sanctions by ramping up discounted purchases of Russian oil.

Ukraine’s President Volodymyr Zelenskyy criticised Modi’s journey, calling it “a devastating blow to peace efforts.” Learn the total story.

And right here’s what I’m retaining tabs on right this moment:

• Financial knowledge: China publishes June inflation figures.

• Financial coverage: New Zealand proclaims its fee determination.

• Thailand: The nation’s constitutional courtroom will maintain a listening to in a case to take away Prime Minister Srettha Thavisin over the appointment to his cupboard of a lawyer who was imprisoned for contempt of courtroom. (Reuters)

• TSMC: Taiwan Semiconductor Manufacturing Firm, the world’s greatest chipmaker, studies June gross sales.

5 extra prime tales

1. Singapore’s Temasek has stated it is going to prioritise US investments and be “cautious” about China, its third-biggest market. The state-owned fund warned in its annual overview that development from investments within the US and India was “offset by the underperformance of China’s capital markets”.

2. Australia has accused a Chinese language state-backed cyber hacking group of focusing on the nation’s authorities and personal sector networks. The assertion yesterday was backed by allies together with the US, UK and Japan, and alleged that the group carried out “malicious cyber operations” for China’s Ministry of State Safety.

3. The Democratic rift over the destiny of Joe Biden’s re-election marketing campaign widened yesterday after lawmakers held a tense and gloomy day of talks on whether or not to rally across the US president or push him to drop his bid. Biden acquired the backing of some essential Democrats — but in addition suffered a brand new defection — as his standing because the get together’s nominee remained in limbo.

• Extra from Washington: European delegations to a Nato leaders’ summit within the US capital this week are holding conferences with overseas coverage associates of Donald Trump, as nervousness rises contained in the army alliance concerning President Joe Biden’s re-election prospects.

4. Shein is launching a €200mn fund that its govt chair says will deal with vogue waste, amid considerations concerning the model’s sustainability and provide chain. The transfer comes because the China-founded on-line fast-fashion group — which faces allegations over its hyperlinks to pressured labour in China’s Xinjiang area — is planning a London itemizing.

5. Saudi Aramco is betting the interior combustion engine shall be round for a “very, very long time” after agreeing to speculate €740mn in Horse Powertrain, an organization devoted to constructing fuel-based engines. Aramco’s govt vice-president explains the explanations for placing the deal.

Information in-depth

China’s speedy shift from coal energy to renewable sources has piled strain on its electrical energy grid, posing a significant impediment to progress on the nation’s inexperienced power transition. Beijing’s response: an unparalleled funding of greater than $800bn within the subsequent six years to improve the creaking grid.

We’re additionally studying . . . 

Chart of the day

Narendra Modi believes India shall be developed by 2047, when the nation celebrates 100 years of independence. In his newest column, Martin Wolf argues it’s seemingly that India shall be a superpower by that point — even when the Indian prime minister’s purpose just isn’t achieved.

Take a break from the information

FT Weekend columnist Nilanjana Roy requires a return to studying, not as a distinct segment exercise, however as an important a part of rising up. However for this era of kids, discovering the time and the correct books to learn is a severe problem. On this age of smartphones and with library closures widening the equality hole, how do you make studying enticing to kids?

Further contributions from Camille De Guzmán and Gordon Smith