FirstFT: India strikes Pakistan as Kashmir battle boils over

At this time’s agenda: US-China commerce talks; Fed choice day; conclave begins; Merz’s rocky first day; and Carney holds his personal with Trump

Good morning. We begin in Asia, the place India has launched what seems to be its most intensive navy assault on Pakistan in a long time.

What we all know thus far: India mentioned it hit “terrorist infrastructure” in 9 websites throughout Pakistan and the a part of Kashmir its neighbour administers, including that no Pakistani navy amenities had been focused. Pakistan mentioned India had launched 24 strikes at six areas, killing not less than eight individuals — together with two kids — and injuring 35. Islamabad additionally mentioned it had shot down 5 Indian fighter jets, whereas state media reported that Pakistani artillery was firing in the direction of Indian-administered Kashmir.

Why it occurred: Tensions have been rising since New Delhi linked Islamabad to final month’s militant assault which killed 26 individuals in Kashmir, a disputed area claimed by each nations. Pakistan has beforehand denied any involvement within the assault. In response, India had suspended participation in a key water-sharing treaty, and the 2 nations sharply downgraded ties, closing airspace, ports and their land border.

Trying forward: Pakistan’s prime minister mentioned India’s strikes had been an “act of war” and has known as a nationwide safety committee assembly. One analyst mentioned Pakistan would retaliate “in the coming hours”, including that there can be “behind the scenes” diplomacy and “the US will be involved at some level”. Washington, which has shut ties with each nations, has urged restraint. US President Donald Trump known as the strikes “a shame” and mentioned he hoped the battle “ends very soon”. We’ll convey you the newest updates right here.

Right here’s what else we’re retaining tabs on at the moment:

• US charge choice: The Federal Reserve is anticipated to maintain rates of interest unchanged.

• Financial knowledge: The EU, France, Germany, Italy and the UK difficulty building buying managers’ indices, whereas the bloc additionally publishes retail gross sales knowledge.

• Conclave: Tensions over the late Pope Francis’s legacy loom as cardinals collect to elect the subsequent chief of the world’s 1.4bn Catholics.

• Xi in Moscow: China’s president is on a four-day journey to Russia for Victory Day and talks with Vladimir Putin.

• Outcomes: DoorDash, which just lately struck a £2.9bn deal to take over Deliveroo, reviews, as do Arm, BMW, Disney and Uber.

How ought to central banks navigate the brand new world order? Pose your questions about financial coverage to Chris Giles and different FT specialists, and have them answered in a stay Q&A at the moment.

5 extra prime tales

1. Washington and Beijing will this week maintain their first commerce talks since Trump imposed tariffs on China. Treasury secretary Scott Bessent and US commerce consultant Jamieson Greer will meet China’s vice-premier He Lifeng in Geneva. Right here’s what to anticipate forward of the talks.

2. Unique: Britain plans to arrange a youth mobility scheme with the EU, a senior UK official has confirmed publicly for the primary time. The scheme is a part of a brand new “strategic partnership” with the bloc, to be launched at a summit this month. George Parker has extra particulars from London.

3. Unique: Israel has allowed a whole lot of Palestinians to depart Gaza in current weeks after months of a near-total block on departures. Diplomats worry the exits are the beginning of a plan — proposed by Trump in February — to empty the Palestinian enclave of its inhabitants.

4. US corporations are planning to purchase again a report $500bn of their very own shares, as they search to deploy their large money piles at a time when Trump’s insurance policies are including to uncertainty over making capital investments. Deutsche Financial institution mentioned the tally of introduced buybacks over the previous three months is the most important rolling three-month sum on report.

5. Unique: Amazon’s self-driving start-up Zoox will scale up manufacturing subsequent yr because it accelerates plans for a industrial rollout of its fleet of robotaxis within the US. The corporate, which makes and operates a bespoke pod-shaped car with out a steering wheel, will open a brand new website in California’s Bay Space, its co-founder informed the FT.

Information in-depth

The Bundestag delivered a stinging blow to Friedrich Merz on day one when an preliminary vote denied him the bulk wanted to turn into Germany’s chancellor — a primary within the historical past of the federal republic. Merz ultimately secured the bulk wanted however yesterday’s occasions had been a vivid instance of his coming problem: attempting to ship an bold agenda with a razor-thin parliamentary majority.

We’re additionally studying . . . 

• ‘Not for sale’: Canadian Prime Minister Mark Carney held his personal as he as soon as once more rejected Trump’s push to annex his nation throughout an Oval Workplace assembly.

• Italian offers: A dealmaking frenzy is poised to reshape the nation’s banking sector, however the ramifications shall be felt throughout Europe.

• Doge: By his personal metrics, Elon Musk’s authorities cost-cutting drive has failed, writes Edward Luce. Was there a hidden methodology to the insanity?

• Resilient espresso: As local weather change places strain on provides, new varieties are coming to the fore, writes Anjana Ahuja.

Chart of the day

The previous US-led financial order is now unsustainable, writes Martin Wolf. America will now not function balancer of final resort, and the world — particularly China and Europe — has to assume afresh.

Take a break from the information

What do flight attendants say about our tradition? The evolution of their uniforms — charged with establishing the visible identities of their residence nations — is reflective not solely of adjusting vogue tastes but in addition of social progress, writes Jessica Beresford.